CrowdStrike has asked a US judge to drop the lawsuit filed by Delta Air Lines. The cybersecurity company points to the contract conditions. Delta Air Lines has sued CrowdStrike over the major outage caused by an update from the company earlier this year. The American airline claims that the disruption caused damage of more than five hundred million dollars and wants CrowdStrike to compensate it.
CrowdStrike states that the contract contains a clause limiting the company’s liability and capping damages. Delta is now trying to circumvent these conditions through the lawsuit, the company informed the judge. The cybersecurity company further states that legislation in the US state of Georgia prevents Delta from converting a breach of contract into compensation for an unlawful act, CNBC reports.
Although Delta has sued CrowdStrike, it continues to use the cybersecurity company’s services. Shortly after the incident, CrowdStrike’s stock price plummeted, but has now largely made up for the damage. According to CNBC, the product stickiness of CrowdStrike’s solutions, especially at large enterprises, has played a role in this.
In short:
| Aspect | Detail |
|---|---|
| Lawsuit | Delta Air Lines has sued CrowdStrike over a major outage, claiming damages over $500 million. |
| Contract Conditions | CrowdStrike cites a contract clause limiting liability and capping damages. |
| Legal Argument | CrowdStrike argues that Georgia law prevents Delta from changing breach of contract claims into compensation for unlawful acts. |
| Ongoing Relationship | Despite the lawsuit, Delta continues to use CrowdStrike’s services. |
| Market Impact | CrowdStrike’s stock initially fell following the incident but has largely recovered. |
