Judge Says Delta Must Face Lawsuit Over Handling of CrowdStrike Outage

Delta Air Lines faces a proposed class action lawsuit over its handling of refunds following a massive computer outage, with a federal judge allowing passengers to move forward with breach-of-contract claims.

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Judge Allows Lawsuit Against Delta to Proceed

US District Judge Mark Cohen has ruled that a proposed class action lawsuit against Delta Air Lines can move forward, allowing passengers affected by a July 2024 computer outage to seek compensation. The lawsuit centers on claims that Delta refused to provide full refunds after a massive system failure disrupted flights nationwide. Judge Cohen determined that five of the nine plaintiffs can pursue breach-of-contract claims against the airline, while a different five plaintiffs can seek relief under the Montreal Convention, which governs international air travel and passenger rights.

The judge dismissed several other claims in the lawsuit, citing federal law preemption that limits certain types of legal actions against airlines. This partial victory for the passengers represents a significant development in their pursuit of compensation for disrupted travel plans. The case, filed as Bajra et al v Delta Air Lines in the US District Court, Northern District of Georgia, could potentially impact thousands of travelers who experienced similar issues during the widespread system failure.

Massive Outage Caused by Software Update

The computer outage that triggered this legal battle was caused by a problematic software update from cybersecurity firm CrowdStrike. The flawed update affected more than 8.5 million Microsoft Windows-based computers worldwide, but Delta was particularly hard hit among major airlines. The technical failure resulted in Delta cancelling approximately 7,000 flights, stranding passengers across the country and disrupting travel plans for countless customers. Some travelers reported missing significant events, including one passenger who allegedly missed a $10,000 cruise due to flight cancellations.

Delta has publicly blamed CrowdStrike for the technical failures, claiming the security company “forced untested and faulty updates to its customers, causing more than 8.5 million Microsoft Windows-based computers around the world to crash.” The airline is involved in separate legal action against CrowdStrike regarding the incident. Meanwhile, Delta has disclosed that the outage resulted in approximately $550 million in lost revenue and additional expenses, though it saved about $50 million in fuel costs due to the reduced flight schedule.

Refund Denials at Center of Passenger Claims

At the heart of the passengers’ lawsuit are allegations that Delta failed to provide proper refunds following the mass cancellations. According to court documents, travelers claim Delta did not issue automatic refunds as required and instead offered partial refunds that came with legal waivers preventing future claims. Specific cases mentioned in the lawsuit include a passenger who allegedly experienced a 15-day luggage delay with allegedly inadequate compensation, highlighting the broader problems travelers faced beyond just cancelled flights.

The incident underscores the vulnerability of modern airlines to technology failures. Neither Delta nor its legal representatives have publicly commented on Judge Cohen’s ruling allowing the lawsuit to proceed. The case could establish important precedents regarding airline responsibilities during technology-related service disruptions, which have become increasingly common in the highly computerized aviation industry.