US Court Lets Delta Proceed with Cyber Outage Suit vs CrowdStrike

A U.S. court has ruled that Delta Air Lines can move forward with key claims in its lawsuit against cybersecurity firm CrowdStrike over a July 2024 software update that allegedly caused a massive systems outage. The airline claims the disruption led to more than USD 500 million in losses and the cancellation of 7,000 flights.

In a May 16 order, Superior Court Judge Kelly Lee Ellerbe of Fulton County, Georgia, denied in part CrowdStrike’s motion to dismiss the case. Delta’s lawsuit accuses the firm of gross negligence, fraud, and computer trespass, among other claims. The case revolves around a software update that allegedly introduced unauthorized and untested code into Delta’s systems, crashing essential infrastructure including airport displays and employee workstations.

Delta argues the update bypassed normal safeguards and impacted global users, with the company claiming that CrowdStrike’s actions amounted to unauthorized and reckless access. The airline also alleges that CrowdStrike altered its update mechanism to avoid regulatory oversight.

CrowdStrike acknowledged issues with the update but contends that its actions were authorized under a service agreement and that Delta’s tort claims are invalid under Georgia law. The judge ruled that Delta’s allegations support further legal scrutiny, particularly regarding concealed actions and potential fraud.

While two claims were withdrawn and some portions of the fraud allegations were dismissed, the lawsuit will now advance to discovery and trial.

CrowdStrike’s legal team remains confident the case lacks merit. Delta expressed satisfaction with the court’s decision and reaffirmed its belief in the strength of its claims.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com