Delta Air Lines dials up Microsoft's legal nemesis over CrowdStrike losses
(2024/07/30)
- Reference: 1722366014
- News link: https://www.theregister.co.uk/2024/07/30/crowdstrike_delta_microsoft_lawsuit/
- Source link:
Delta Air Lines lost hundreds of millions of dollars due to the CrowdStrike outage earlier this month – and it has hired a high-powered law firm to claw some of those lost funds back, potentially from the Falcon maker and Microsoft itself.
CNBC [1]broke the news yesterday that Delta had hired famed lawyer [2]David Boies to look into what the airline could do to recoup as much as an [3]estimated $500 million in operational losses due to the [4]July 19 CrowdStrike outage . Millions of Windows machines around the world were knocked offline due to what we now know was [5]a bad Channel File update , with Microsoft sharing some of the [6]billions of dollars in blame for the incident with CrowdStrike.
For those who don't recognize Boies's name, you'll likely be aware of his work – and so will Microsoft. Boies was appointed as [7]special trial counsel for the Department of Justice's 1998 [8]antitrust fight against the Windows maker , and has represented Microsoft opponents in [9]other cases as well.
[10]
Microsoft was [11]found guilty on most charges related to tying Internet Explorer to Windows to push out rival browser makers in 2000 before [12]settling on appeals with the DoJ the following year.
[13]
[14]
Boies has also [15]represented high-profile tech sector clients including Theranos, where he also sat on the board until the US government's investigations of the business began. Additional cases Boies was involved with include representing plaintiffs in a 2009 California case that overturned the state's ban on same-sex marriage, representing US presidential candidate Al Gore in his failed case against George Bush after the 2000 election, and working for victims of Jeffrey Epstein.
The Register has received confirmation from our sources that Delta has hired Boies's firm, Boies Schiller Flexner, to look into their recovery options – which potentially includes Microsoft and Crowdstrike. Boies himself may not be directly involved in the case, we're told. Delta and Boies Schiller Flexner declined to comment.
[16]
Microsoft hasn't responded to questions either, while CrowdStrike only told us it was "aware of the reporting, but have no knowledge of a lawsuit and have no further comment."
Delta will need all the help it can get
There doesn't appear to have been a lawsuit filed against CrowdStrike and Microsoft by Delta, but it makes sense that the company would hire such a high-profile lawyer in the matter. If CrowdStrike's [17]terms and conditions end up holding legal water, there's not much Delta can do to claw back its losses.
[18]CrowdStrike Windows patchpocalypse could take weeks to fix, IT admins fear
[19]How a cheap barcode scanner helped fix CrowdStrike'd Windows PCs in a flash
[20]CrowdStrike meets Murphy's Law: Anything that can go wrong will
[21]EU gave CrowdStrike the keys to the Windows kernel, claims Microsoft
CrowdStrike's Ts&Cs limit its liability only to refunding customer money paid for services rendered, and excludes any obligation to refund customers for losses due to interrupted service or other problems. Speaking to Business Insider, lawyer Elizabeth Burgin Waller [22]said shortly after the outage that some large companies (airlines like Delta, for instance) may have negotiated additional coverage from CrowdStrike, but those contracts typically aren't public. Absent of Delta making its CrowdStrike agreement public, it's unknown if Delta has better terms to support its claims.
Delta is likely trying anything it can do right now to get government regulators off its case, and shifting blame onto CrowdStrike and Microsoft is likely first on its list of strategies. The US Department of Transportation opened an [23]investigation into the airline last week following its cancellation of [24]nearly 7,000 flights and a growing list of reimbursement requests from nearly 200,000 passengers.
Delta, said Secretary of Transportation Pete Buttigieg, took way longer than other affected airlines to recover.
"Most of those airlines recovered and got back to normal within a couple of days. Delta, on the other hand, still not back to normal," Buttigieg [25]said on Wednesday, July 24.
[26]
Delta [27]reported the next morning that it had returned to normal operations. ®
Get our [28]Tech Resources
[1] https://www.cnbc.com/video/2024/07/29/delta-hires-law-firm-following-software-outage-seeking-compensation-from-microsoft-crowdstrike.html
[2] https://www.theregister.com/2000/05/31/ms_trial_lawyer_in_legal/
[3] https://www.bloomberg.com/news/articles/2024-07-24/delta-seen-taking-500-million-hit-as-disruptions-start-to-ease?srnd=homepage-americas&sref=h4tCfJuJ
[4] https://www.theregister.com/2024/07/19/crowdstrike_windows_kettle/
[5] https://www.theregister.com/2024/07/23/crowdstrike_failure_shows_need_for/
[6] https://www.theregister.com/2024/07/26/crowdstrike_insurance_money/
[7] https://www.justice.gov/atr/complaint-us-v-microsoft-corp
[8] https://www.theregister.com/1998/10/20/microsoft_on_trial/
[9] https://www.theregister.com/2011/12/01/barnes_noble_microsoft_legal_nemesis/
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cso&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZqliiSU6MzFOUgoNLKT8WgAAAM0&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[11] https://www.theregister.com/2000/04/04/judge_finds_against_ms/
[12] https://www.theregister.com/2001/11/02/doj_to_cut_ms_sellout/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cso&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZqliiSU6MzFOUgoNLKT8WgAAAM0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cso&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZqliiSU6MzFOUgoNLKT8WgAAAM0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2016/04/26/theranos_lumbers_on/
[16] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cso&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZqliiSU6MzFOUgoNLKT8WgAAAM0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[17] https://www.crowdstrike.com/terms-conditions/
[18] https://www.theregister.com/2024/07/19/crowdstrike_windows_kettle/
[19] https://www.theregister.com/2024/07/25/crowdstrike_remediation_with_barcode_scanner/
[20] https://www.theregister.com/2024/07/26/crowdstrike_meets_murphys_law/
[21] https://www.theregister.com/2024/07/22/windows_crowdstrike_kernel_eu/
[22] https://www.businessinsider.com/crowdstrike-terms-conditions-limits-damages-to-refund-2024-7
[23] https://www.theregister.com/2024/07/24/transport_department_delta_probe/
[24] https://www.cnbc.com/2024/07/29/delta-hires-david-boies-to-seek-damages-from-crowdstrike-microsoft-.html
[25] https://x.com/USDOT/status/1815895239174799767
[26] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cso&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZqliiSU6MzFOUgoNLKT8WgAAAM0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[27] https://news.delta.com/update/july-2024-operation/delta-starts-thursdays-operation-zero-cancellations
[28] https://whitepapers.theregister.com/
CNBC [1]broke the news yesterday that Delta had hired famed lawyer [2]David Boies to look into what the airline could do to recoup as much as an [3]estimated $500 million in operational losses due to the [4]July 19 CrowdStrike outage . Millions of Windows machines around the world were knocked offline due to what we now know was [5]a bad Channel File update , with Microsoft sharing some of the [6]billions of dollars in blame for the incident with CrowdStrike.
For those who don't recognize Boies's name, you'll likely be aware of his work – and so will Microsoft. Boies was appointed as [7]special trial counsel for the Department of Justice's 1998 [8]antitrust fight against the Windows maker , and has represented Microsoft opponents in [9]other cases as well.
[10]
Microsoft was [11]found guilty on most charges related to tying Internet Explorer to Windows to push out rival browser makers in 2000 before [12]settling on appeals with the DoJ the following year.
[13]
[14]
Boies has also [15]represented high-profile tech sector clients including Theranos, where he also sat on the board until the US government's investigations of the business began. Additional cases Boies was involved with include representing plaintiffs in a 2009 California case that overturned the state's ban on same-sex marriage, representing US presidential candidate Al Gore in his failed case against George Bush after the 2000 election, and working for victims of Jeffrey Epstein.
The Register has received confirmation from our sources that Delta has hired Boies's firm, Boies Schiller Flexner, to look into their recovery options – which potentially includes Microsoft and Crowdstrike. Boies himself may not be directly involved in the case, we're told. Delta and Boies Schiller Flexner declined to comment.
[16]
Microsoft hasn't responded to questions either, while CrowdStrike only told us it was "aware of the reporting, but have no knowledge of a lawsuit and have no further comment."
Delta will need all the help it can get
There doesn't appear to have been a lawsuit filed against CrowdStrike and Microsoft by Delta, but it makes sense that the company would hire such a high-profile lawyer in the matter. If CrowdStrike's [17]terms and conditions end up holding legal water, there's not much Delta can do to claw back its losses.
[18]CrowdStrike Windows patchpocalypse could take weeks to fix, IT admins fear
[19]How a cheap barcode scanner helped fix CrowdStrike'd Windows PCs in a flash
[20]CrowdStrike meets Murphy's Law: Anything that can go wrong will
[21]EU gave CrowdStrike the keys to the Windows kernel, claims Microsoft
CrowdStrike's Ts&Cs limit its liability only to refunding customer money paid for services rendered, and excludes any obligation to refund customers for losses due to interrupted service or other problems. Speaking to Business Insider, lawyer Elizabeth Burgin Waller [22]said shortly after the outage that some large companies (airlines like Delta, for instance) may have negotiated additional coverage from CrowdStrike, but those contracts typically aren't public. Absent of Delta making its CrowdStrike agreement public, it's unknown if Delta has better terms to support its claims.
Delta is likely trying anything it can do right now to get government regulators off its case, and shifting blame onto CrowdStrike and Microsoft is likely first on its list of strategies. The US Department of Transportation opened an [23]investigation into the airline last week following its cancellation of [24]nearly 7,000 flights and a growing list of reimbursement requests from nearly 200,000 passengers.
Delta, said Secretary of Transportation Pete Buttigieg, took way longer than other affected airlines to recover.
"Most of those airlines recovered and got back to normal within a couple of days. Delta, on the other hand, still not back to normal," Buttigieg [25]said on Wednesday, July 24.
[26]
Delta [27]reported the next morning that it had returned to normal operations. ®
Get our [28]Tech Resources
[1] https://www.cnbc.com/video/2024/07/29/delta-hires-law-firm-following-software-outage-seeking-compensation-from-microsoft-crowdstrike.html
[2] https://www.theregister.com/2000/05/31/ms_trial_lawyer_in_legal/
[3] https://www.bloomberg.com/news/articles/2024-07-24/delta-seen-taking-500-million-hit-as-disruptions-start-to-ease?srnd=homepage-americas&sref=h4tCfJuJ
[4] https://www.theregister.com/2024/07/19/crowdstrike_windows_kettle/
[5] https://www.theregister.com/2024/07/23/crowdstrike_failure_shows_need_for/
[6] https://www.theregister.com/2024/07/26/crowdstrike_insurance_money/
[7] https://www.justice.gov/atr/complaint-us-v-microsoft-corp
[8] https://www.theregister.com/1998/10/20/microsoft_on_trial/
[9] https://www.theregister.com/2011/12/01/barnes_noble_microsoft_legal_nemesis/
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cso&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZqliiSU6MzFOUgoNLKT8WgAAAM0&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[11] https://www.theregister.com/2000/04/04/judge_finds_against_ms/
[12] https://www.theregister.com/2001/11/02/doj_to_cut_ms_sellout/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cso&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZqliiSU6MzFOUgoNLKT8WgAAAM0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cso&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZqliiSU6MzFOUgoNLKT8WgAAAM0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2016/04/26/theranos_lumbers_on/
[16] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cso&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZqliiSU6MzFOUgoNLKT8WgAAAM0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[17] https://www.crowdstrike.com/terms-conditions/
[18] https://www.theregister.com/2024/07/19/crowdstrike_windows_kettle/
[19] https://www.theregister.com/2024/07/25/crowdstrike_remediation_with_barcode_scanner/
[20] https://www.theregister.com/2024/07/26/crowdstrike_meets_murphys_law/
[21] https://www.theregister.com/2024/07/22/windows_crowdstrike_kernel_eu/
[22] https://www.businessinsider.com/crowdstrike-terms-conditions-limits-damages-to-refund-2024-7
[23] https://www.theregister.com/2024/07/24/transport_department_delta_probe/
[24] https://www.cnbc.com/2024/07/29/delta-hires-david-boies-to-seek-damages-from-crowdstrike-microsoft-.html
[25] https://x.com/USDOT/status/1815895239174799767
[26] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_security/cso&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZqliiSU6MzFOUgoNLKT8WgAAAM0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[27] https://news.delta.com/update/july-2024-operation/delta-starts-thursdays-operation-zero-cancellations
[28] https://whitepapers.theregister.com/
DS999
They can't, the government regulates some things about flying, including requirements for refunds when the flight is canceled.
Missing elephants
Roger Kynaston
Another of Boies Schiller's clients was one Darl MacBride, one time CEO of SCO. He also represented Victoria Giuffre agains the Prince once known as Andrew if I remember correclty.
Re: Missing elephants
Anonymous Coward
ITYM the Andrew once known as Prince.
Re: Missing elephants
Roger Kynaston
Quite right. Too much rapid typing going on.
Doctor Syntax
Are the T&Cs sufficient to defeat gross negligence? Do they cover pushed updates? Alternatively how would a defence that they disclaim the product's being of any use whatsoever help subsequent sales?
Sparkus
SolarWinds seems to be dodging responsibility / accountability for their failings......
ZaphodHarkonnen
For B2B contracts it's generally a lot harder to get such clauses ruled as not applicable. The idea being that businesses have the capability to examine contracts throughly. And Delta is not some small four person business who could argue they didn't have a reasonable ability to understand.
The CS event was....
Sparkus
.....enabled by a combination of bad build and testing on the part of CS **and** (don't forget) deliberate design decision by msft to hide a set of API calls that set their own internal AV solution (Defender) at a significant performance advantage compared to third-party tools.
When msft was caught with their design pants down, the decision was made to open those APIs up to everyone and anyone when the rational/good design decision should have been to kill off the calls.
And that's how we got here.
The court case that needs to be settled is if msft and their managers/executives are liable for global user damages caused by poor design and implementation of their products.
"CrowdStrike's Ts&Cs limit its liability only to refunding customer money paid for services rendered, and excludes any obligation to refund customers for losses due to interrupted service or other problems."
So Delta is probably not hiring the law firm to go after CrowdStrike, instead they're working to incorporate similar Ts&Cs into Delta's customer agreements regarding cancelled flights.