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No lawsuits yet, Crowdstrike says amid reports US airline hires firm to seek damages following tech outage | Scoop
A CNBC report stated Delta Air Lines engaged a legal team to seek damages from losses suffered due to CrowdStrike's global tech outage earlier this month. – Delta Air Lines Facebook pic, July 31, 2024
News

No lawsuits yet, Crowdstrike says amid reports US airline hires firm to seek damages following tech outage

Following alleged lawsuit, software’s share price decreases more than 8%, customers slowing down spending on products

Scoop Reporters
Updated
3:44 PM MYT

 

KUALA LUMPUR – CrowdStrike has refuted rumours that the company is being sued by a well-known US airline. 

A CNBC report stated Delta Air Lines engaged US law firm Boies, Schiller & Flexner, to seek damages arising from losses suffered due to CrowdStrike’s global tech outage earlier this month. 

However, a CrowdStrike spokesperson told Reuters that they were aware of reports on the matter but have no knowledge of a lawsuit. 

Following the news report, CrowdStrike’s share price fell more than 8% on Tuesday, adding a further loss to the company which saw its stock value reduce by over US$20 million after the worldwide service disruption.

Meanwhile, customers are also considering slowing down spending on Crowdstrike products, according to investment banking firm Evercore ISI. 

On July 19, a CrowdStrike update for Windows’ host systems caused widespread service disruptions, affecting transportation services, banks, and media broadcasting globally, among other key sectors. 

In Malaysia, several airlines had to manually check in passengers at klia2, leading to long queues. Additionally, some users reported encountering the “blue screen of death,” a well-known error message on Windows systems.

Digital Minister Gobind Singh Deo said the outage also affected five government agencies, namely the Education Ministry, Transport Ministry, Rural and Regional Development Ministry, National Institutes of Health, and Lembaga Zakat Kedah.

CrowdStrike explained that the incident was not a result of a cyberattack, but a content configuration update that affected the Falcon Sensor, which protects key risk areas and the Windows operating system. – July 31, 2024

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