Delta Faces Class Action Lawsuit Over CrowdStrike Outage Compensation

Case Overview: A class action lawsuit has been filed against Delta Air Lines alleging inadequate refunds and compensation for passengers affected by the CrowdStrike software outage, which caused widespread flight cancellations.  

Consumers Affected: Delta Air Lines passengers whose flights were canceled or significantly disrupted due to the CrowdStrike outage. 

Court: U.S. District Court for the Northern District of Georgia

Delta Air Lines is being accused of failing to adequately refund passengers or provide promised meal, hotel, and transportation vouchers following the massive CrowdStrike software outage on July 19.

The new lawsuit alleges that Delta's failure to recover from the outage left passengers stranded at airports across the country, sometimes thousands of miles from home, and ended up costing them thousands of dollars. 

Delta, which canceled more than 4,500 flights between July 19 and July 21, allegedly offered e-credits to affected passengers instead of letting them their right to a cash refund, required by federal law. The lawsuit claims that this misrepresentation led many passengers to forgo their right to a refund, opting for the e-credits instead.

Passengers Left Stranded and Out of Pocket After Delta Cancels Flights

The proposed class action was filed in Georgia by plaintiffs Arben Bajra, John Brennan, Asher Einhorn, and Melanie Susman. Bajra, a resident of Colorado, said he purchased two roundtrip tickets to Amsterdam for $2,299 scheduled to leave on the 19th, but ended up having numerous flights delayed and canceled, even after rebooking numerous times.

Despite being left thousands out of pocket, he said Delta's response was a $100 voucher, far less than the promised automatic refund for his ticket and out-of-pocket expenses.

Florida resident Brennan said he and his wife missed their $10,000 anniversary cruise after Delta canceled their flight from Tampa to Seattle. The couple was stranded overnight in Atlanta without luggage and could not find alternative transportation. They incurred over $800 in out-of-pocket expenses, yet Delta only provided a partial refund of $219.45 and a $100 voucher, failing to cover their losses.

Einhorn said Delta canceled his return flight from Boston and despite multiple attempts to rebook, the company offered no assistance, leaving him to cover hotel, transportation, and alternative flight costs totaling around $1,500. Delta partially refunded his original ticket and offered $100 for his additional expenses.

Meanwhile Susman said she faced multiple flight cancellations and had to book a new flight with a different airline at an additional cost of approximately $950. Although Delta provided her with a meal voucher, it was rejected at the airport. Delta's response was a partial refund of $300, less than her total expenses.

Faulty Software Update Caused Massive Disruptions for Delta and Other Airlines

The outage was caused by a faulty update to cybersecurity firm CrowdStrike's software. Millions of computers running Microsoft Windows crashed, leading to massive delays across the global airline industry. 

Airlines, including Delta, were forced to rely on manual operations, leading to widespread chaos. By the end of the day, over 4,000 flights had been canceled and 35,500 delayed worldwide. While other airlines had mostly recovered by the following Monday, Delta continued to cancel flights throughout the week, leaving passengers in difficult situations, the lawsuit alleges.

Delta Accused of Failing to Fulfill Promises to Passengers

The lawsuit accuses Delta of failing to meet its commitments to passengers during the crisis, saying that the company promised meal vouchers, hotel accommodations, and ground transportation, but those promises were not fulfilled. 

Even after operations supposedly returned to normal by July 25, passengers continued to report cancellations through the end of the month. Delta allegedly offered e-credits as compensation without informing passengers of their right to a cash refund, leading many to accept the e-credits unknowingly.

Delta Faces Multiple Legal Challenges and Investigations

It’s not just consumers raising concerns about Delta’s management of the outage, with the US Department of Transportation opening an investigation after receiving 3,000 passenger complaints. 

Meanwhile, CrowdStrike itself is also in the hot seat. Delta has told CrowdStrike and Microsoft it intends to sue over the $500 million it claims to have lost due to the outage, while CrownStrike shareholders have filed a lawsuit, and small business owners affected by the outage may also be bringing legal action, Wired reports.

Earlier this month, fliers themselves brought a class action lawsuit against the software company, accusing it of negligence in testing and deploying its software, Reuters reports.

The plaintiffs in the Delta CrowdStrike outage class action lawsuit seek to represent all passengers whose flights were canceled between July 19 and July 31. They are seeking class certification and damages, bringing claims for breach of contract, fraud, unjust enrichment, and violations of state consumer protection laws.

Case Details

• Lawsuit: Bajra, et al. v. Delta Air Lines Inc.
• Case Number: 1:24-cv-03477
• Court: U.S. District Court for the Northern District of Georgia 

Plaintiffs' Attorneys

• E. Adam Webb and G. Franklin Lemond, Jr. (Webb Klase & Lemond LLC)
• Joseph G. Sauder, Joseph B. Kenney, and Juliette T. Mogenson (Sauder Schelkopf LLC)

Were you affected by the Delta Air Lines cancellations in July? Share your experience and thoughts on their compensation in the comments below.