• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

CrowdStrike moves to dismiss Delta Air Lines suit, citing contract terms

by December 18, 2024
written by December 18, 2024

CrowdStrike moved Monday evening to dismiss Delta Air Lines’ lawsuit around the July cybersecurity outage that led to canceled flights and stranded passengers, arguing that the airline’s litigation was an attempt to circumvent the contract between the two companies.

The agreement between CrowdStrike and Delta includes a clause limiting CrowdStrike’s liability and a cap on damages, which the cybersecurity provider says Delta is now trying to skirt. CrowdStrike also argued in its filing that Georgia law prevents Delta from converting a breach of contract into tort claims.

“As an initial matter, Georgia’s economic loss rule specifically precludes Delta’s efforts to recover through tort claims the economic damages it claims to have suffered,” CrowdStrike wrote.

Delta said the July cybersecurity outage cost the company more than $500 million in canceled flights, refunds and passenger accommodations. It is seeking to recoup those costs from CrowdStrike through the suit. But the damage done to Delta’s reputation as a premium carrier can’t yet be quantified, nor has the impact of a Department of Transportation investigation into Delta over the outage.

Delta continues to rely on CrowdStrike services following the outage, likely because it is extremely difficult to change cybersecurity providers in systems as large and complicated as Delta’s. 

Still, CrowdStrike said it moved quickly to try and help Delta — offers the cybersecurity company says were rebuffed. “We are good for now,” one message from a Delta executive cited by CrowdStrike read. The cybersecurity company said its executives were in close contact on the day of the outage.

“Delta repeatedly rebuffed any assistance from CrowdStrike or its partners,” CrowdStrike wrote.

CrowdStrike further argues that Delta’s own practices and systems led to the widespread delays and cancellations, unlike other industry peers who recovered much more quickly from the outage.

“Delta was an outlier. Although Delta acknowledges that it took just hours—not days—for Delta employees to” remediate the outage, CrowdStrike wrote in its filing, “cancellations far exceeded the flight disruptions its peer airlines experienced.”

The cybersecurity company’s stock took a sharp hit after the outage, plunging 44%. It’s since largely recovered from those losses, posting strong quarterly results even after lowering its guidance due to the incident. CrowdStrike has been helped by the relative stickiness of its products, especially at large enterprises.

A Delta spokesperson was not immediately available for comment.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
RFK Jr. says he plans to also meet with Dems in bid to get confirmed as Trump HHS head
next post
Farm state Republicans appear skeptical about RFK amid his quest for HHS confirmation

related articles

Walmart boosts sales outlook as it says tariff...

August 21, 2025

How a ship that glides like a pelican...

August 21, 2025

Apple just landed a key win for the...

August 20, 2025

Best Buy launches third-party marketplace as it looks...

August 19, 2025

Group accused of using fake accounts to buy...

August 19, 2025

Playboy moving its headquarters to Miami Beach and...

August 17, 2025

Lyft co-founders to step down from ride-hailing firm’s...

August 16, 2025

Warren Buffett’s Berkshire Hathaway reveals new stake in...

August 16, 2025

Apple Watch getting redesigned blood oxygen feature following...

August 15, 2025

The CEO in chief: How Trump is getting...

August 15, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Summertime and the living is uneasy on Capitol Hill

    August 10, 2025
  • Here’s what happened during Trump’s 12th week in office

    April 12, 2025
  • Amazon same-day prescription delivery expanding to nearly half of U.S. in 2025

    October 9, 2024
  • US ends terrorist designation of Syrian militant leaders

    July 7, 2025
  • US pulls team from ceasefire talks in Qatar after Israel does the same, claiming Hamas is acting in bad faith

    July 24, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,783)
  • Investing (634)
  • Stock (893)

Latest Posts

  • How the Inflation Reduction Act sparked a manufacturing and clean energy boom

    August 20, 2024
  • Dem claims Trump wielding nuclear strike authority ‘should terrify you’ — then people point out the obvious

    December 13, 2024
  • Outgoing Treasury Sec. Yellen ‘sorry that we haven’t made more progress,’ believes deficit must be decreased

    December 11, 2024

Recent Posts

  • RFK Jr cancels $500 million in mRNA research, HHS to prioritize ‘safer’ vaccine alternatives

    August 5, 2025
  • Freshman GOP lawmaker rallies behind Trump’s rapid illegal immigration crackdown: ‘No time to waste’

    January 28, 2025
  • Mike Johnson mounts 20-state blitz to keep House red as GOP braces for Harris VP reveal

    August 5, 2024

Editor’s Pick

  • Air India plane crash: London-bound flight with 242 onboard crashes after take-off

    June 12, 2025
  • Conservative legal group presses agency to act on Trump’s voter citizenship mandate despite court injunctions

    July 16, 2025
  • As Apple enters AI race, iPhone maker turns to its army of developers for an edge

    October 7, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock