The back and forth between CrowdStrike Holdings (CRWD) and Delta Air Lines (DAL) is heating up after the cybersecurity firm said the air carrier rejected its offer of onsite help during a recent technical outage that impacted several industries and services. CrowdStrike also said that is ready to defend itself against Delta's claims.
Delta canceled over 5,000 flights between July 19 and July 25, costing it about $500 million, which it said it would try to recover by pursuing legal claims against CrowdStrike and Microsoft (MSFT), according to CNBC.
However, Michael Carlinsky, a lawyer for the cybersecurity firm and co-managing partner at Quinn Emanuel Urquhart & Sullivan, said in a letter sent Sunday night that CrowdStrike CEO George Kurtz reached out to Delta CEO Ed Bastian "to offer onsite assistance, but received no response."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Should Delta pursue this path, Delta will have to explain to the public, its shareholders, and ultimately a jury why CrowdStrike took responsibility for its actions – swiftly, transparently, and constructively – while Delta did not," Carlinsky wrote in the letter.
The lawyer added that CrowdStrike's liability is capped in the single-digit millions and that CrowdStrike hopes "Delta will agree to work cooperatively to find a resolution."
CrowdStrike's stock has fallen over 35% since July 18, the day before the outage, while Delta's stock is down about 14%.
Is CrowdStrike stock a buy, sell or hold?
Despite the bad press and poor price performance since the technical outage, Wall Street remains bullish on the cybersecurity stock.
According to S&P Global Market Intelligence, the average analyst target price for CRWD stock is $356.23, representing implied upside of over 61% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Wedbush has a Buy rating on CRWD stock with a $315 price target.
"The mention of CrowdStrike's legal liability in 'single-digit' millions will help frame what the potential liability and damages risk for CRWD could be," says Wedbush analyst Taz Koujalgi. "For a large customer such as Delta, if CRWD's liability risk is in the single-digit millions, the overall risk would be a lot less than feared."
Koujalgi added that CRWD's overall liability for the outage would be in the $200 million range, which is lower than many anticipated.
Related Content
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Original Medicare vs Medicare Advantage Quiz: Which is Right for You?Quiz Take this quick quiz to discover your "Medicare Personality Type" and learn whether you are a Traditionalist, or a Bundler.
-
Ask the Editor: Capital Gains and Tax PlanningAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on capital gains tax rates and end-of-year tax planning
-
Crypto Trends to Watch in 2026
Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Time Is Running Out to Make the Best Moves to Save on Your 2025 TaxesDon't wait until January — investors, including those with a high net worth, can snag big tax savings for 2025 (and 2026) with these strategies.
-
I'm an Insurance Pro: If You Do One Boring Task Before the End of the Year, Make It This One (It Could Save You Thousands)Who wants to check insurance policies when there's fun to be had? Still, making sure everything is up to date (coverage and deductibles) can save you a ton.
-
4 Smart Ways Retirees Can Give More to Charity, From a Financial AdviserFor retirees, tax efficiency and charitable giving should go hand in hand. After all, why not maximize your gifts and minimize the amount that goes to the IRS?
-
Small Caps Hit a New High on Rate-Cut Hope: Stock Market TodayOdds for a December rate cut remain high after the latest batch of jobs data, which helped the Russell 2000 outperform today.
-
What Investors May Face in the New Year: InterviewKeith Lerner, the chief market strategist and chief investment officer for Truist Wealth, speaks with Kiplinger.
-
3 Year-End Tax Strategies for Retirees With $2 Million to $10 MillionTo avoid the OBBB messing up your whole tax strategy, get your Roth conversions and charitable bunching done by year's end.
-
'Politics' Is a Dirty Word for Some Financial Advisers: 3 Reasons This Financial Planner Vehemently DisagreesYour financial plan should be aligned with your values and your politics. If your adviser refuses to talk about them, it's time to go elsewhere.
