Air travellers sue CrowdStrike over global outage

CrowdStrike is facing legal challenges following a major global computer outage that disrupted air travel and affected various sectors, including banks and hospitals. A proposed class action lawsuit filed in Austin, Texas, alleges that the cybersecurity company’s negligence in testing and deploying its software caused the outage. The plaintiffs, who are air travellers, claim they incurred significant expenses and inconvenience as they scrambled to reach their destinations.

Many travellers had to spend hundreds of dollars on lodging, meals, and alternative travel arrangements, with some even experiencing health issues from sleeping on airport floors. The plaintiffs argue that CrowdStrike should compensate those affected by the disruption, citing previous technology-related flight groundings that made the outage foreseeable. CrowdStrike has stated that it believes the case lacks merit and plans to defend itself vigorously.

The outage was caused by a flawed software update that crashed over 8 million computers worldwide. Delta Air Lines, which cancelled more than 6,000 flights at a cost of about $500 million, has indicated it may take legal action against CrowdStrike. The airline declined CrowdStrike’s offer of assistance, and a US Department of Transportation probe is underway to determine why Delta took longer to recover compared to other airlines.

CrowdStrike’s stock price dropped by about one-third following the incident, prompting a shareholder lawsuit. Despite the mounting legal pressures, CrowdStrike maintains that it was neither grossly negligent nor at fault for the problems faced by Delta. The outcome of these legal battles could have significant implications for the cybersecurity company.