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Delta Faces Lawsuit Over Massive IT Outage

Delta Faces Lawsuit Over Massive IT Outage

Passengers have sued Delta Air Lines, seeking refunds following a massive IT outage that led to widespread flight cancellations. This disruption occurred during a global CrowdStrike outage in July, now considered one of the largest IT failures in history. 

The outage not only caused chaos for Delta passengers but also triggered legal and financial repercussions for both Delta and CrowdStrike, which is already facing a class action lawsuit for alleged negligence.

Allegations In The Lawsuit

The lawsuit, filed in the Northern District of Georgia by law firms Sauder Schelkopf and Webb, Klase & Lemond, accuses Delta of failing to recover promptly from the IT failure. Passengers allege that Delta’s inadequate response left many stranded in airports worldwide, often thousands of miles from home. 

Despite Delta's claims of restored operations, the plaintiffs argue that the effects of the outage continued to be felt for nearly two weeks. Moreover, the suit alleges that Delta ignored or refused requests for timely refunds for canceled or delayed flights. The airline is also accused of not providing the promised meal, hotel, and ground transportation vouchers to affected passengers. 

This alleged failure forced travelers to incur "thousands of dollars" in unexpected expenses. Additionally, passengers separated from their luggage were left without essential items like medication and clothing.

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Financial And Legal Repercussions

Delta has faced significant financial losses since the outage. CEO Ed Bastian has estimated that the incident will cost the airline $500 million, including lost revenue and compensation to customers. 

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Dispute With CrowdStrike

The lawsuit comes amid a growing public dispute between Delta and CrowdStrike, along with Microsoft, over responsibility for the outage. CrowdStrike has pushed back against Delta’s claims that it did not provide adequate assistance during the incident. In a letter sent this week, CrowdStrike's legal team said the company reached out to Delta within hours of the outage to offer support and remediation options.

Federal Investigation

Delta faces a federal investigation into its handling of the situation. While other airlines managed to recover more quickly from the widespread IT disruption, Delta’s slower response added to the scrutiny and criticism it faced.

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