CrowdStrike Holdings Inc Stock News

CrowdStrike (CRWD) shares are in the spotlight after Delta Air Lines (DAL) on Friday filed a lawsuit against the cybersecurity provider following a faulty software update in July that brought its operations to a standstill and caused mass flight cancellations.

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Delta Air Lines has made good on its promise to sue cybersecurity firm CrowdStrike. The lawsuit, as reported Friday (Oct. 25) evening by The Wall Street Journal (WSJ), stems from a worldwide technology outage in July that grounded 7,000 Delta flights, while causing upheaval at other airlines, banks and hospitals.

Delta Airlines (DAL) is suing cybersecurity company Crowdstrike Inc. (CRWD) over a faulty software update in July that brought its operations to a halt and affected more than a million customers.

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The July 19 incident led to worldwide flight cancellations and hit industries around the globe including banks, health care, media companies and hotel chains.

Delta is asking for damages to cover over $500 million in losses, along with litigation costs and punitive damages, after an IT outage involving CrowdStrike's security software. The airline, which canceled thousands of flights, said CrowdStrike's software flaws reached its computers even though it had disabled automatic updates.

Delta Air Lines on Friday sued CrowdStrike in a Georgia state court after a global outage in July caused mass flight cancellations, disrupted travel plans of 1.3 million customers and cost the carrier more than $500 million.