Cybersecurity firm CrowdStrike on Sunday, Aug. 4, shot down Delta Air Lines’ claim that it should be financially responsible for a global outage that stranded half a million of its passengers in mid-July. The response comes after Delta hired high-powered attorney David Boies’ law firm looking for compensation from both Microsoft and CrowdStrike.
In a letter reported by Reuters and others, an attorney for CrowdStrike said it is “highly disappointed by Delta’s suggestion that CrowdStrike acted inappropriately and strongly rejects any allegation that it was grossly negligent or committed misconduct.”
The global outage, caused by a faulty update, forced Delta to cancel 6,000 flights over six days, which stranded more than half a million passengers.
“We got hit the hardest with recovery capabilities,” Delta CEO Ed Bastian told CNBC on July 31. “People don’t realize Microsoft and CrowdStrike are the top two competitors around [cybersecurity] with each other. So they don’t necessarily partner [at] the same level that we need them to. So I think this is a call to the industry.”
CrowdStrike’s attorney said if Delta moves forward with a lawsuit, it “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.”
“We have to protect our shareholders, we have to protect our customers, our employees, for the damage,” Bastian told CNBC. “Not just for the cost, but the brand, the reputational damage and the physical challenges.”
“But we’re looking to make certain that we get compensated for what they cost us,” Bastian said. “Half a billion dollars in five days.”
For its part, CrowdStrike said its contracts limit compensation for these types of situations to the “single-digit millions.”
CrowdStrike also said its CEO personally reached out to Bastian to offer onsite assistance “but received no response.” The attorney said Delta will need to answer why they didn’t accept that help.
Bastian told CNBC all they offered was “free consulting advice” to assist with the issues.
Delta said the company spent tens of millions of dollars per day in compensation and hotels to travelers. The Department of Transportation opened an investigation into why Delta took so much longer than other airlines to get up and running.