Delta Air Lines' lawsuit against CrowdStrike is being dismissed by the latter, based on contractual terms.

• Delta Air Lines' lawsuit regarding the July cybersecurity outage that resulted in canceled flights was dismissed by CrowdStrike on Monday evening.
• In its filing, CrowdStrike contended that Georgia law prohibits Delta from transforming a breach of contract into tort claims.

The airline moved to dismiss the lawsuit filed in July over the cybersecurity outage that resulted in canceled flights and stranded passengers, claiming that the airline's litigation was an attempt to bypass the contract between the two companies.

CrowdStrike stated that Georgia's economic loss rule prevents Delta from recovering economic damages through tort claims.

Delta is suing CrowdStrike for more than $500 million in damages resulting from the July cybersecurity outage, which led to canceled flights, refunds, and passenger accommodations. However, the cost to Delta's reputation as a premium airline and the impact of a Department of Transportation investigation into the outage are yet to be quantified.

Delta remains dependent on CrowdStrike services after the outage due to the complexity of its systems, making it challenging to switch to a new cybersecurity provider.

CrowdStrike stated that it promptly attempted to assist Delta, but its offers were rejected. According to CrowdStrike, a Delta executive responded with the message, "We are good for now." The cybersecurity company's executives were in close contact with Delta on the day of the outage.

CrowdStrike wrote that Delta consistently rejected any help from CrowdStrike or its allies.

CrowdStrike claims that Delta's own practices and systems were responsible for the widespread delays and cancellations, unlike other industry peers who recovered more quickly from the outage.

"Delta was an outlier, as CrowdStrike wrote in its filing, despite Delta acknowledging that it only took hours for Delta employees to remediate the outage, cancellations exceeded the flight disruptions experienced by its peer airlines."

The cybersecurity company's stock suffered a significant decline of 44% following the outage. Despite this, the company has since regained some of its losses and posted strong quarterly results. CrowdStrike's products have been successful in retaining customers, particularly at large enterprises.

A Delta spokesperson was not immediately available for comment.