CrowdStrike is sued by fliers after massive outage disrupts air travel

CrowdStrike is sued by fliers after massive outage disrupts air travel


Travelers wait to board their delayed flight at the Hartsfield-Jackson Atlanta International Airport on July 23, 2024 in Atlanta, Georgia. 

Brandon Bell | Getty Images

CrowdStrike‘s 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 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 should pay compensatory and punitive damages to anyone whose flight was disrupted, after technology-related flight groundings for Southwest Airlines and other carriers in 2023 made the outage “entirely foreseeable.”

CrowdStrike 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 has said it may take legal action against Austin-based CrowdStrike after canceling more than 6,000 flights, at a cost of about $500 million.

On Sunday, CrowdStrike 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.



Source

Stock futures rise as traders weigh Fed’s super-sized rate cut: Live updates
World

Stock futures rise as traders weigh Fed’s super-sized rate cut: Live updates

A trader works on the trading floor at the New York Stock Exchange following the Federal Reserve rate announcement on Sept. 18, 2024. Andrew Kelly | Reuters U.S. stock futures rose Wednesday night as traders digested the Federal Reserve’s earlier decision to lower interest rates by a half percentage point. Dow Jones Industrial Average futures […]

Read More
Asia-Pacific markets open higher as investors digest outsized Fed rate cut
World

Asia-Pacific markets open higher as investors digest outsized Fed rate cut

The Bank of Japan headquarters is seen in Tokyo on January 30, 2017. The Bank of Japan will pull the plug on its eight-year negative interest rate policy in April, according to more than 80% of economists polled by Reuters, marking a long-awaited major shift from a global outlier central bank. Kazuhiro Nogi | Afp | […]

Read More
Powell downplays impact of rate cut on Trump-Harris presidential race
World

Powell downplays impact of rate cut on Trump-Harris presidential race

U.S. Vice President Kamala Harris in Milwaukee, Wisconsin, U.S. August 20, 2024 and former U.S. President Donald Trump in Bedminster, New Jersey, U.S., August 15, 2024 are seen in a combination of file photographs.  Marco Bello | Jeenah Moon | Reuters Federal Reserve Chair Jerome Powell suggested that Wednesday’s larger-than-expected interest rate cut may have […]

Read More