• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick CrowdStrike says it isn’t to blame for Delta’s flight cancellations after July outage
Editor's Pick

CrowdStrike says it isn’t to blame for Delta’s flight cancellations after July outage

by August 5, 2024
by August 5, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

CrowdStrike on Sunday said Delta Air Lines had rejected on-site help during last month’s massive outage that sparked thousands of flight cancellations.

Delta CEO Ed Bastian told CNBC’s “Squawk Box” last week that the mass cancellations following the outage, which occurred at one of the busiest times of the year, cost the company about $500 million, including customer compensation. The airline has “no choice” but to seek damages, he said.

Bastian told staff on Friday that the airline had informed CrowdStrike and Microsoft that the company was “planning to pursue legal claims” to recover its losses stemming from the outage and that it had hired law firm Boies Schiller Flexner.

In response, Michael Carlinsky, CrowdStrike’s lawyer and co-managing partner at Quinn Emanuel Urquhart & Sullivan, wrote to Delta’s lawyer David Boies on Sunday that Delta’s litigation threats “contributed to a misleading narrative that CrowdStrike is responsible for Delta’s IT decisions and response to the outage.”

He said CrowdStrike CEO George Kurtz reached out to Bastian to “offer onsite assistance, but received no response.”

Delta canceled more than 5,000 flights between the July 19 outage, caused by a botched software update, through July 25, more than its rivals.

CrowdStrike shares have lost more than 36% of their value since the outages affected millions of computers running the company’s software atop Microsoft’s Windows operating system. The outage hit industries from banking to health care to air travel.

“Should Delta pursue this path, Delta will have to explain to the public, its shareholders, and ultimately a jury why CrowdStrike took responsibility for its actions—swiftly, transparently, and constructively—while Delta did not,” Carlinsky’s letter said.

He said Delta would have to preserve a series of documents, including those describing its information-technology infrastructure, IT business continuity plans and its handling of outages over the past five years.

CrowdStrike’s contractual liability is capped in the single-digit millions, the letter said. Delta did not comment on the letter on Sunday night. In a separate statement, CrowdStrike said it hopes “Delta will agree to work cooperatively to find a resolution.”

“We did everything we could to take care of our customers over that time frame,” Bastian said in an interview Wednesday on CNBC’s “Squawk Box.” “If you’re going to be having access, priority access, to the Delta ecosystem in terms of technology, you’ve got to test this stuff. You can’t come into a mission critical 24/7 operation and tell us we have a bug. It doesn’t work.”

CrowdStrike vowed to release future software updates in stages in a preliminary post-incident report.

On July 30, CrowdStrike shareholders filed a suit against the company in a Texas federal court and sought damages for declines in their investments.

CrowdStrike reports fiscal second-quarter results Aug. 28.

A Microsoft spokesperson did not immediately respond to CNBC’s request for comment.

This post appeared first on NBC NEWS
You Might Also Like
  • GM to end production of electric Chevy Bolt, its first mass-market EV, this year
  • Global debt has grown to $315 trillion this year — here’s how we got here
  • Disney accused of withholding hundreds of millions of dollars from ‘Avatar’ sequel financier
  • Credit card balances jump and are above $1 trillion for the first time
Share
0
FacebookTwitterPinterestWhatsapp

previous post
American recession fears spark selloff in international markets and point to lower U.S. open
next post
Top Venezuelan prosecutor launches criminal investigation into Maduro opposition

You may also like

The housing crunch is still squeezing buyers — but not...

July 30, 2024

Tesla’s Cybertruck recalled for a fourth time over two separate...

June 26, 2024

Prosecutors in Sam Bankman-Fried trial compare defense argument to ‘Dumb...

October 24, 2023

Hatch Baby recalls 919,000 power adapters on Rest 1st Generation...

July 4, 2024

Boeing’s new outsider CEO Ortberg takes the helm, this time...

August 9, 2024

Toyota recalling 1.12 million vehicles over potential air bag issue

December 21, 2023

Campbell Soup buying makers of Rao’s pasta sauce for $2.7...

August 9, 2023

The uncommon lending practices behind Silicon Valley Bank’s woes

March 19, 2023

How crazy popcorn buckets became big business for movie theaters

February 19, 2025

Summer vacation is increasingly for the rich

May 15, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Federal Reserve says it may stop...

    May 4, 2023

    Consumers are tired of price increases....

    February 23, 2024

    Philip Morris to invest $232 million...

    August 29, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here