Furious Travelers Sue CrowdStrike Over Devastating Global IT Outage That Grounded Flights | World News

CrowdStrike Faces Lawsuit Over Global Computer Outage

CrowdStrike’s legal woes intensified on Monday following a global computer outage that grounded flights and disrupted essential services. The cybersecurity company is now being sued by air travelers whose flights were delayed or canceled.

A proposed class action filed in Austin, Texas, federal court accuses CrowdStrike of negligence in testing and deploying its software, causing the outage that affected banks, hospitals, and emergency lines worldwide. Plaintiffs claim many travelers incurred significant expenses for lodging, meals, and alternative travel arrangements, while others faced health issues from sleeping at airports.

The lawsuit demands compensatory and punitive damages, arguing that technology-related flight cancellations, notably for Southwest Airlines and other carriers in 2023, made the outage foreseeable. In response, CrowdStrike stated, “We believe this case lacks merit and we will vigorously defend the company.”

The legal action follows a drop in CrowdStrike’s stock price by roughly one-third, prompting another lawsuit from shareholders in late July. The outage originated from a flawed software update that incapacitated over 8 million computers.

Delta Air Lines, having canceled more than 6,000 flights at a cost of about $500 million, hinted at legal action against Austin-based CrowdStrike. CrowdStrike countered on Sunday, asserting they were neither grossly negligent nor responsible for Delta’s extended recovery period, claiming the Atlanta-based airline declined their assistance.

Additionally, Delta is under scrutiny by the U.S. Department of Transportation for taking longer than its rivals to recover from the outage.

The case is filed as del Rio et al v. CrowdStrike Inc, U.S.

Note: Only the headline and photo of this report may have been revised by Business Standard staff; the article content is sourced from a syndicated feed.

Original Story https://www.business-standard.com/world-news/crowdstrike-sued-by-fliers-after-global-it-outage-disrupted-air-travel-124080600106_1.html
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