CrowdStrike Faces Legal Challenges After $500M Delta Claim and Microsoft's Response

Aug 6, 2024, 06:56 PM

CrowdStrike is facing significant legal challenges following a massive IT outage caused by a faulty software update on July 19, 2024. This update led to the crash of approximately 8.5 million Windows devices worldwide, affecting hospitals, banks, 911 systems, and airlines. Delta Air Lines, one of the most affected companies, claims the outage cost them $500 million and has filed a lawsuit against CrowdStrike. A class action lawsuit has also been filed by fliers. In response, CrowdStrike has hired the law firm Quinn Emanuel Urquhart & Sullivan to defend against the fallout and has released a root cause analysis of the incident. Meanwhile, Microsoft and Delta are engaged in a blame game, with Delta's CEO criticizing Microsoft's platform as fragile, while Microsoft argues that Delta's outdated technology contributed to the disruption. CrowdStrike has also implemented new safety measures and is working with third-party security vendors to review its Falcon code.