Subj : Delta CEO says CrowdStrike IT outage will cost airline $500m  as
To   : All
From : TechnologyDaily
Date : Thu Aug 01 2024 19:00:05

Delta CEO says CrowdStrike IT outage will cost airline $500m  as tech firm 
also sued by shareholders

Date:
Thu, 01 Aug 2024 17:57:23 +0000

Description:
CrowdStrike is being threatened with legal action from shareholders and 
Delta, and that could just be the start.

FULL STORY
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CrowdStrike shareholders have filed a lawsuit against the cybersecurity 
company following a faulty software update that led millions of devices to 
crash around the world. 

The lawsuit, filed in Austin, Texas, accuses CrowdStrike of making false and 
misleading statements regarding its software testing procedures. 

It claims the companys share price plummeted a staggering 32% within 12 days 
of the incident, leading to a market value loss of $25 billion. Shareholders 
sue CrowdStrike after outage 

Subsequently, those who held stock between November 29 and July 29 are 
seeking unspecified compensation, alleging that executives defrauded 
investors by falsely assuring them that software updates were thoroughly 
tested. 

On March 5, CEO George Kurtz had stated that the firms software was 
validated, tested and certified. 

A company person told the BBC : We believe this case lacks merit and we will 
vigorously defend the company. 

The issues stemmed from a bug in the system designed to ensure the proper 
functioning of software updates, which allowed problematic content data in a 
file to go undetected. 

On its ongoing incident report page , CrowdStrike declared that virtually all 
devices had been restored: Using a week-over-week comparison, ~99% of Windows 
sensors are online as of July 29 at 5pm PT, compared to before the content 
update. We typically see a variance of ~1% week-over-week in sensor 
connections. 

The disruption hit Delta Airlines particularly hard, costing the airline 
around $500 million in lost revenue and passenger compensation. The company 
had to cancel more than 5,000 flights and manually reset 40,000 servers. 

Delta CEO Ed Bastian has indicated that the airline will seek damages from 
CrowdStrike, stating: We have no choice. The company has reportedly enlisted 
the help of renowned lawyer David Boies to seek compensation from both 
CrowdStrike and Microsoft. More from TechRadar Pro Check out the best 
endpoint protection software tools around In need of an upgrade? Weve rounded 
up a list of the best small business servers Microsoft 365 went down after a 
cyberattack  but don't worry, it's not another CrowdStrike-esque outage



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Link to news story:
https://www.techradar.com/pro/delta-ceo-says-crowdstrike-it-outage-will-cost-a
irline-dollar500m-as-tech-firm-sued-by-shareholders


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