Microsoft has finally responded following legal threats from Delta CEO Ed Bastian last Wednesday.
Delta have claimed that the IT outage seen at the end of last month will cost them $500 million in lost revenue and refunds to customers.
IT Outage
Windows devices went down on July 25, which was initially set off by a CrowdStrike software update that crashed thousands of Microsoft systems.
The outage caused chaos in health systems and airlines. Delta were particularly affected by the outage, which caused numerous flight delays and cancellations.
Delta Response
Delta is in a weakened state following the crashes. Not only have they lost a reported $500 million, but their stock prices are down over 17%.
Part of their response has been to prepare themselves to take legal action in an attempt to recoup some of this lost revenue.
Legal Battles Ahead
Delta were reported last week to have hired high-profile lawyer David Boies, who worked on behalf of Theranos through their blood testing scandal.
Now, Delta’s CEO, Bastian, has said that the has “no choice” but to pursue legal action against the 2 companies at the heart of the outage, Microsoft and CrowdStrike.
CrowdStrike Worst Affected?
Of the 3 companies looking down the barrel of legal action, CrowdStrike may have an argument as being the worst affected, and worse may be yet to come.
Despite their integral involvement, Microsoft’s share prices were not hugely affected by the outage, while CrowdStrike’s plummeted over 25%.
CrowdStrike Response to Delta Legal Challenge
Delta’s legal threat has prompted a critical response from a CrowdStrike spokesperson, who did not believe it was a “constructive” move.
Speaking to Axios, they said: “Public posturing about potentially bringing a meritless lawsuit against CrowdStrike as a long-time partner is not constructive to any party.”
Legal Tit-for-Tat
CrowdStrike also responded in a more formal, less public manner through a letter directed towards Delta’s legal team.
They said that they “[strongly] reject any allegation that [they were] grossly negligent or committed willful misconduct.”
Microsoft Seek to Defend Reputation
Microsoft also responded to the threat of legal action from Delta, and took particular issue with how the airline were presenting Microsoft in public.
They sent a letter to Delta on Tuesday, which said: “Given Delta’s false and damaging public statements, Microsoft will vigorously defend itself in any litigation if Delta chooses to pursue that path.”
The Blame Game
Microsoft says that they can provide communications showing that Delta refused their help.
They believe that, instead of seeking Microsoft’s help directly, Delta looked to IBM for solutions to their IT woes.
Battle Rages On
Whatever the ultimate outcome, this one may rumble on for some time given the amount of money involved in the dispute.
The companies will continue to seek to defend their reputations, and this is unlikely to be the last time we see one of the 3 attempting to shift the blame for the debacle onto another.
