The skies are cloudy with more than just summer storms as Delta Airlines prepares to launch a major lawsuit against tech giants CrowdStrike and Microsoft. The source of the turbulence? A catastrophic software update that crippled Delta's operations, costing them hundreds of millions and leaving thousands of passengers stranded.
On July 19th, a seemingly routine software update from CrowdStrike triggered a domino effect, causing widespread failures in Microsoft systems. The fallout was felt across multiple industries, with banking, healthcare, and aviation bearing the brunt of the outage. A staggering 8.5 million Windows devices were impacted, including a significant portion of Delta's servers. Crowdstrike is an Austin, Texas based cybersecurity technology company specializing in endpoint security, threat intelligence, and cyberattack response services.
The impact on the airline industry was particularly severe, with thousands of flights grounded nationwide. Delta alone estimates its losses between a staggering $350-500 million. The chaos led to nearly 7,000 canceled flights, leaving over 176,000 passengers scrambling for refunds or alternative travel arrangements. Alarmed by the scale of the disruption, the Department of Transportation has launched an investigation into Delta's operations during the outage.
Delta isn't letting this slide, as plans to mitigate overall damages have already impacted CrowdStrike’s market value. The airline has enlisted legal heavyweight David Boies, known for his roles in landmark cases like the US antitrust case against Microsoft and the fight to overturn California's ban on gay marriage. This strategic move signals Delta's intent to seek substantial compensation for the massive disruption.
While the lawsuit is yet to be formally filed, the tremors are already being felt in the tech world. CrowdStrike, in particular, has seen its stock price plummet by 25% since the outage, a stark reflection of investor anxiety.
The financial fallout extends far beyond Delta's balance sheet. Insurance firm Parametrix estimates that Fortune 500 companies, excluding Microsoft, have collectively lost a staggering $5.4 billion due to the outage. As companies tally their losses, it's increasingly likely that other affected businesses will join Delta in seeking compensation from CrowdStrike and Microsoft.
This developing story highlights the interconnectedness of our digital world and the potentially devastating consequences when critical systems fail. The lawsuit's outcome could have far-reaching implications for software liability and the tech industry as a whole. One thing is certain: the skies won't be clearing anytime soon for CrowdStrike and Microsoft.