WASHINGTON, Aug 4 (Reuters) - CrowdStrike ( CRWD ) on
Sunday rejected a claim by Delta Air Lines ( DAL ) that it
should be blamed for flight disruptions following a July 19
global outage sparked by a faulty update, and suggested it had
minimal potential liability.
Delta CEO Ed Bastian said last week the outage had cost the
U.S. airline $500 million and that it planned to take legal
action to get compensation from the cybersecurity firm.
CrowdStrike ( CRWD ) reiterated its apology to the airline operator,
but said in a letter from an external lawyer that it is "highly
disappointed by Delta's suggestion that CrowdStrike ( CRWD ) acted
inappropriately and strongly rejects any allegation that it was
grossly negligent or committed misconduct."
Delta canceled more than 6,000 flights over a six-day
period, impacting more than 500,000 passengers. It faces a U.S.
Transportation Department investigation into why it took so much
longer for it to recover from the outage than other airlines.
The CrowdStrike ( CRWD ) letter said that "any liability by
CrowdStrike ( CRWD ) is contractually capped at an amount in the
single-digit millions."
Delta declined to comment on the CrowdStrike ( CRWD ) letter.
Within hours of the outage incident, CrowdStrike ( CRWD ) reached out
to Delta to offer assistance.
"Additionally, CrowdStrike's ( CRWD ) CEO personally reached out to
Delta's CEO to offer onsite assistance, but received no
response," the letter said.
Bastian told CNBC last week CrowdStrike ( CRWD ) had offered "free
consulting advice to help us."
Delta told U.S. lawmakers last week in a letter seen by
Reuters that CrowdStrike's ( CRWD ) faulty update "impacted more than
half of Delta computers, including many of Delta's workstations
at every airport in the Delta network."
The letter added Delta's "complex IT system which
distributes and synchronizes all our data, including the data
that feeds our crew tracking and gating software, required
manual recovery."
The CrowdStrike ( CRWD ) letter added that if Delta files suit, it
will need to answer "why Delta's competitors, facing similar
challenges, all restored operations much faster" and "why Delta
turned down free onsite help from CrowdStrike ( CRWD ) professionals who
assisted many other customers to restore operations much more
quickly than Delta."
A CrowdStrike ( CRWD ) spokesperson said "public posturing about
potentially bringing a meritless lawsuit against CrowdStrike ( CRWD ) as
a long-time partner is not constructive to any party. We hope
that Delta will agree to work cooperatively to find a
resolution."