Business

CrowdStrike Moves to Dismiss Delta's Case: A Clash Over Cybersecurity Liability

CrowdStrike Seeks Dismissal of Delta's Lawsuit

CrowdStrike Holdings Inc. has reportedly taken steps to dismiss a case brought against it by Delta Air Lines Inc., according to a recent CNBC report that cites a court filing from the cybersecurity firm. The crux of the matter revolves around the alleged damages Delta seeks due to an incident not covered under their contract.

Contractual Clauses and Economic Loss Rule

In the court documents, CrowdStrike emphasizes that the contract between the two companies includes a clause that governs its liabilities and the extent of damages Delta can claim. Specifically, the company asserts that "Georgia’s economic loss rule specifically precludes Delta's efforts to recover through tort claims the economic damages it claims to have suffered."

Previous Legal Threats and Microsoft's Role

Earlier this year, Delta had threatened to seek compensation for the losses it incurred during a global computer outage caused by an update to Microsoft's security software, which utilized CrowdStrike's services. Meanwhile, Microsoft Corporation claimed that Delta had rejected its offer of assistance in dealing with the issue.