Delta ordered to participate in class action lawsuit due to CloudStrike outage, as ruled by judge

A federal judge in Atlanta recently made a crucial decision to permit a lawsuit against Delta Air Lines filed by disgruntled customers to proceed. This lawsuit focuses on the fallout from the CrowdStrike outage that occurred on July 19, 2024. This incident originated with an erroneous update issued by CrowdStrike for its tool “Falcon,” leading to severe disruptions worldwide. Delta Air Lines bore the brunt of this outage, resulting in the cancellation of over 6,500 flights due to system malfunctions.

Six days after the chaos ensued, Delta finally managed to resume its operations, although not without repercussions. The U.S. Department of Transportation launched an investigation into Delta Air Lines’ handling of the crisis, scrutinizing the delays and cancellations that ensued. Remarkably, during the period of disruption, Delta axed more flights than it had in both 2018 and 2019 combined, leading to significant financial losses. CEO Ed Bastian revealed that the operational disruption cost the airline a staggering “half a billion dollars” in just five days.

In response to these losses, Delta sought recourse by hiring legal representation to explore potential damages from CrowdStrike and Microsoft, both of which contested the airline’s allegations. Subsequently, a group of affected Delta customers initiated a lawsuit against the airline in August, accusing Delta of dismissing or neglecting their requests for timely refunds for disrupted flights. The lawsuit highlights that impacted passengers incurred unexpected expenses, such as alternative flights, accommodation, transportation, and meals.

Many passengers were issued meager refunds or flight vouchers, prolonging their ordeal. While numerous airlines swiftly rebounded from the technical glitch on July 19, Delta’s passengers faced protracted delays and uncertainty, culminating in extensive wait times and queues as they endeavored to reach their destinations. Attorney Joe Sauder from Sauder Schelkopf, representing the aggrieved passengers, expressed optimism about the litigation’s outcome and the pursuit of justice on their behalf.

Following the judge’s ruling, ten plaintiffs were granted permission to proceed with claims related to flight delays and cancellations, despite Delta’s attempts to curtail most claims. Notably, the judge dismissed the remaining claims, emphasizing that the parties involved in the lawsuit must submit a revised joint preliminary report and discovery plan by May 20. This development underscores the ongoing legal battle between Delta Air Lines and its customers, indicating a protracted period of legal proceedings to ascertain accountability and restitution for the affected passengers.