CrowdStrike (NASDAQ: CRWD) recently issued a public response to accusations from Delta (NYSE: DAL) concerning the significant IT outage on July 19, 2024. Delta had claimed that a faulty software update from CrowdStrike led to massive flight cancellations and delays, resulting in $500 million in damages. In this letter, CrowdStrike firmly rejected these allegations, defending its actions and criticizing the airline’s crisis management response.
The letter, authored by Michael Carlinsky, a legal representative for CrowdStrike, aims to clarify the company’s position and address the issues raised by Delta. The company emphasizes its attempts to assist during the crisis and highlights discrepancies in Delta’s narrative.
Why it matters: The resolution of this conflict could influence future protocols for cybersecurity incidents, affecting how companies and service providers manage and mitigate large-scale IT disruptions. Moreover, it highlights the importance of transparent communication and accountability in crisis management, setting precedents for how companies navigate legal and reputational challenges following such incidents.
- Rejection of Negligence Claims: CrowdStrike refutes Delta’s accusations of gross negligence and misconduct, stating that it conducted necessary testing and validation before deploying the update.
- Offers of Assistance: CrowdStrike CEO George Kurtz reached out to Delta’s CEO to offer onsite help during the outage, which was allegedly ignored by Delta. This undermines the airline’s claim of abandonment during the crisis.
- Criticism of Delta’s Response: CrowdStrike questions why Delta’s competitors recovered more quickly from the same outage, suggesting that the company’s internal crisis management processes should be scrutinized.
- Public Posturing: The letter criticizes the public threats of legal action as unconstructive, urging a cooperative resolution instead of media escalation.
- Limited Liability: CrowdStrike mentions that its financial liability is capped in the single-digit millions, much lower than the $500 million claimed. This point aims to frame the potential damages in a more realistic context.
