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Delta faces hurdles in lawsuit against CrowdStrike over flight cancellations

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Delta faces hurdles in lawsuit against CrowdStrike over flight cancellations
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Delta Air Lines canceled more flights last month than in 2018 and 2019 combined, following an outage involving their cybersecurity provider, CrowdStrike. The airline delayed addressing customer concerns, denied responsibility for the disruptions, and its CEO attended the Paris Olympics during the crisis.

Delta has announced plans to sue CrowdStrike for damages, asserting that the outage was not their fault. However, Delta faces several challenges in this legal pursuit:

- They must demonstrate gross negligence by CrowdStrike rather than mere negligence. Proving intentional or reckless behavior is necessary.

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- Their contract with CrowdStrike limits potential damages.

- Delta's own cost-saving measures, including reductions in IT staff, may have exacerbated the situation.

CrowdStrike responded to Delta’s legal threat by expressing regret and apologizing for the incident. They stated: "Public posturing about potentially bringing a meritless lawsuit against CrowdStrike as a long-time partner is not constructive to any party. We hope that Delta will agree to work cooperatively to find a resolution."

CrowdStrike's legal team noted that Delta’s meltdown was unprecedented among airlines and highlighted attempts to assist Delta during the crisis: "CrowdStrike’s CEO personally reached out to Delta’s CEO to offer onsite assistance but received no response." They added that further offers of support were declined by Delta.

They argued that the severity of the meltdown resulted from “Delta’s IT decisions and response to the outage.” Additionally, they emphasized that liability is contractually capped at an amount in the single-digit millions.

CrowdStrike suggested that litigation could expose deficiencies in Delta's IT infrastructure and operational resilience. Such revelations might harm Delta's premium reputation more than any potential financial recovery from a lawsuit.

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