Delta’s new attorney seeks over $350 million from Microsoft and CrowdStrike after the global outage — a $10 gift card won’t cut it

by

Delta's new attorney seeks over $350 million from Microsoft and CrowdStrike after the global outage — a $10 gift card won't cut it

What you need to know

  • Trouble continues to brew for Microsoft and CrowdStrike after the global IT outage, as Delta has hired a prominent lawyer to seek damages.
  • Delta Air Lines reportedly lost over $350 million during the outage in flight cancellations and reimbursements.
  • The outage has negatively impacted CrowdStrike’s value, which lost one-quarter of its value in just two trading days.

As a tech enthusiast with over two decades of experience under my belt, I’ve seen my fair share of IT mishaps, but the recent global outage caused by Microsoft and CrowdStrike has topped them all. The impact on Delta Air Lines was staggering, with losses estimated at around $400 million.

The prolonged service disruption affecting Microsoft, including about 8.5 million Windows devices due to a malfunctioning CrowdStrike, appears to be putting both companies in a difficult situation, sandwiched between potential losses and damage control.

As a devoted travel enthusiast, I can’t help but reflect on a harrowing experience I had recently with Delta Air Lines – an ordeal that felt like a digital pandemic of its own. Thousands of us passengers were left stranded at the airport for hours due to unforeseen technical issues, which even forced flight attendants to issue handwritten boarding passes!

Read moreApple Maps now works on your Windows PC... sort of

Following the unexpected global IT disruption, Microsoft promptly announced that they had rectified the problem and suggested rebooting devices as many as 15 times to accelerate the recovery process. Affected users were swift in assigning blame to Microsoft for the outage, but it was subsequently determined that Microsoft was not responsible for the incident.

Recovering from a digital pandemic

Delta's new attorney seeks over $350 million from Microsoft and CrowdStrike after the global outage — a $10 gift card won't cut it

Microsoft and CrowdStike have implemented robust precautions to ensure this incident doesn’t happen again, one of which is limiting CrowdStike’s Falcon security software from accessing the core Windows 11 system (kernel level).

After that regrettable event, CrowdStrike saw a significant drop in its market worth over just two trading days. This was evidenced by a decrease of approximately 5% in its share value, following news that Delta had brought on Boles to pursue potential compensation claims against the company. As a tech enthusiast, it’s concerning to see such a rapid decline due to legal matters.

Read moreRemnant 2 announces third and final DLC 'The Dark Horizon' on its birthday, and its release date isn't far off

In a nutshell, the extensive power outage caused Delta Air Lines to suffer a financial loss of between $350 million and $500 million. This setback led to over 176,000 requests for refunds and reimbursements. It’s also important to mention that around 7,000 passengers decided to cancel their flights due to this incident.

It appears that Delta, like many others, may be one of the initial entities taking legal action due to the problematic update, targeting both CrowdStrike and Microsoft. I can’t help but think that CrowdStrike might require something more substantial than $10 worth of mistaken Uber Eats vouchers to rectify this issue.

This is a developing story; we’ll keep you posted with more information as it becomes available.

Read More

2024-07-31 17:09