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CrowdStrike can be sued by Delta for a computer failure that resulted in 7,000 cancelled flights

A Georgia state court ruled that Delta Air Lines could pursue a large part of its lawsuit against cybersecurity company CrowdStrike for a massive outage in July last year, which caused the carrier's cancellation of 7,000 flights.

Judge Kelly Lee Ellerbe, of the Fulton County Superior Court, said that Delta could try to prove CrowdStrike's gross negligence in pushing out a defective upgrade of its Falcon software, which crashed more than 8,000,000 Microsoft Windows-based computer worldwide.

The judge stated that Delta had pled specifically that CrowdStrike would have detected the programming error if it had tested the July update before deployment on one computer. As CrowdStrike acknowledged, CrowdStrike's own president publicly stated CrowdStrike had done something "horribly incorrect."

The Atlanta-based court also allowed Delta to pursue a claim for computer trespass, as well as a claim narrowed down that CrowdStrike had fraudulently guaranteed not to introduce an “unauthorized backdoor” into the carrier’s computers.

CrowdStrike lawyer Michael Carlinsky stated in a Monday statement that he is confident the judge will either find Delta's lawsuit to be without merit or limit damages under Georgia law to "single digit millions of dollar".

Delta, which is based in Atlanta said that it was satisfied with the ruling and still believed in its case.

Three months after the July 19th 2024 outage, Delta sued CrowdStrike in Austin, Texas.

Delta said that the outage resulted in a loss of revenue and expenses of $550 million, which was offset by fuel savings of $50 million.

A federal judge in Atlanta ruled on May 6 that Delta must face class actions filed by passengers who claim it refused to refund their money after the outage disrupted their trip.

Other airlines were also affected, but their disruptions subsided faster.

Delta Air Lines Inc. v. CrowdStrike Inc., Georgia Superior Court Fulton County No. 24CV013621. (Reporting and Editing by Nick Zieminski in New York)

(source: Reuters)