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CrowdStrike is sued by fliers after massive outage disrupts air travel
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CrowdStrike is sued by fliers after massive outage disrupts air travel
Aug 5, 2024 2:58 PM

Aug 5 (Reuters) - CrowdStrike's ( CRWD ) legal troubles

from last month's massive global computer outage deepened on

Monday, as the cybersecurity company was sued by air travelers

whose flights were delayed or canceled.

In a proposed class action filed in the Austin, Texas,

federal court, three fliers blamed CrowdStrike's ( CRWD ) negligence in

testing and deploying its software for the outage, which also

disrupted banks, hospitals and emergency lines around the world.

The plaintiffs said that as fliers scrambled to get to their

destinations, many spent hundreds of dollars on lodging, meals

and alternative travel, while others missed work or suffered

health problems from having to sleep on the airport floor.

They said CrowdStrike ( CRWD ) should pay compensatory and punitive

damages to anyone whose flight was disrupted, after

technology-related flight groundings for Southwest Airlines ( LUV )

and other carriers in 2023 made the outage "entirely

foreseeable."

CrowdStrike ( CRWD ) said in a statement: "We believe this case lacks

merit and we will vigorously defend the company."

It provided an identical statement in response to a

shareholder lawsuit filed on July 31, after the company's stock

price had fallen by about one-third.

The outage stemmed from a flawed software update that

crashed more than 8 million computers.

Delta Air Lines ( DAL ) has said it may take legal action

against Austin-based CrowdStrike ( CRWD ) after canceling more than 6,000

flights, at a cost of about $500 million.

On Sunday, CrowdStrike ( CRWD ) said it was neither grossly negligent

nor at fault for Delta's problems, and that the Atlanta-based

carrier did not accept its offer for help.

Delta faces a U.S. Department of Transportation probe into

why it needed more time than rivals to recover from the outage.

Monday's case is del Rio et al v CrowdStrike Inc, U.S.

District Court, Western District of Texas, No. 24-00881.

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