CrowdStrike moves to dismiss Delta Air Lines suit, citing contract terms
Source: NBC News/CNBC
Dec. 17, 2024, 12:03 PM EST
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.
Read more: https://www.nbcnews.com/business/business-news/crowdstrike-moves-dismiss-delta-air-lines-suit-citing-contract-terms-rcna184549