Delta officially sues CrowdStrike over July meltdown

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Delta is suing CrowdStrike.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:04Wall Street is on the mend to start a new week after the S&P 500 snapped a six-week

00:09winning streak.

00:10The tech-heavy Nasdaq is at a record high ahead of earnings from some of its biggest

00:14players.

00:15In addition, oil prices are sharply lower after Israel's attack on Iran failed to disrupt

00:20global energy supplies.

00:22In other news, Delta and CrowdStrike are officially heading to court.

00:26The airline is suing the software security firm for causing the massive computer outage

00:31in July that forced Delta to cancel more than 7,000 flights.

00:35Some 1.3 million passengers were impacted over a five-day period.

00:40The failed software upgrade knocked computers offline around the globe, including those

00:44of Delta's rivals.

00:45Delta, however, struggled more than any other company to get back online.

00:50Nevertheless, its lawsuit clearly pins the blame on CrowdStrike.

00:55Because the faulty update could not be removed remotely, CrowdStrike crippled Delta's business

01:00and created immense delays for Delta's customers.

01:04Delta is seeking reimbursement of more than $500 million, as well as additional money

01:08for lost profits, attorney fees and compensation for reputational harm and future revenue loss.

01:16CrowdStrike responded to the lawsuit with a statement.

01:19Delta's claims are based on disproven misinformation, demonstrate a lack of understanding of how

01:24modern cybersecurity works, and reflect a desperate attempt to shift blame for its

01:30slow recovery away from its failure to modernize its antiquated IT infrastructure.

01:36The Department of Transportation is looking into what happened at Delta during the tech

01:40snafu.

01:41That'll do it for your daily briefing from the New York Stock Exchange.

01:44I'm Conway Gittins with the Street.