Can Delta win its Crowdstrike lawsuit?

By Tamlin Magee for Raconteur
Friday, November 8, 2024

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The lawsuit becomes more complex if Delta’s internal practices contributed to its operational difficulties. Legal disputes often amount to who can prove they did everything reasonable to prevent harms.

Proving negligence wouldn’t be impossible, but it would be a “long shot”, according to Ilia Kolochenko, cybersecurity practice lead at Platt Law. Going to court would most probably involve a drawn out “fierce battle of expert witnesses”, he says.

Kolochenko believes the breach of contract claim may have a better chance, but notes that most vendor contracts expressly exclude or cap damages, leaving the plaintiff with only a nominal victory in court. “Here, the plaintiff’s legal and judicial costs are poised to be much larger than the judgement,” he says.

The potential impact of Delta versus Crowdstrike

However, if the lawsuit did go to court, a Delta victory could set a major precedent and could encourage other impacted Crowdstrike customers to file their own lawsuits against the company. “If Delta wins, this would create a full spectrum of problems for everybody, where IT and cyber vendors start urgently reviewing their contracts,” says Kolochenko.

Varghese adds that such a win would ensure that cyber firms were held to a higher standard of care – and put vendors in the legal firing line, even if a client is not following best practice. Providers would then likely protect themselves against liability through additional disclaimers and safeguards.

Conversely, says Varghese, a Crowdstrike win would reassert that clients are responsible for their cybersecurity posture and encourage companies to take more responsibility for their cybersecurity operations.

Protracted legal battles rarely end well for either organisation involved, so Kolochenko says it’d be best for everyone if they simply settled. “I think the best outcome for everybody – Delta, Crowdstrike and society – is to settle quietly and forget about this case,” he adds. “Otherwise we are opening Pandora’s Box. Everybody will be suing each other and cybersecurity business will become impossible.” Read Full Article