Investing.com -- Cybersecurity firm CrowdStrike (NASDAQ:CRWD) has rejectedDelta Air Lines' (NYSE:DAL) claims that it was responsible for the massive outage that caused thousands of flight cancellations in July, CNBC reported on Monday.
The outage, which occurred at the peak of the summer travel season, cost Delta an estimated $500 million in damages.
Delta CEO Ed Bastian has publicly stated the airline plans to pursue legal action against CrowdStrike and Microsoft (NASDAQ:MSFT) to recoup its losses.
However, CrowdStrike has countered these claims, stating that its CEO offered onsite assistance to Delta during the crisis but was declined. The company has also emphasized that its contractual liability is capped in the single-digit millions, the report added.
The dispute between the two companies has escalated, with legal teams exchanging letters and Delta demanding extensive documentation related to its IT infrastructure and outage management.
As the legal battle unfolds, both companies are facing public scrutiny and potential financial repercussions.
CrowdStrike has also announced plans to release future software updates in stages to prevent similar disruptions. The company is scheduled to report its fiscal second-quarter results on August 28.