Delta Faces Legal Turbulence Over Refused Refunds After Tech Meltdown

Delta Air Lines is under legal fire from passengers demanding refunds following a massive computer outage last month that paralyzed travel plans. The class action lawsuit, unveiled in an Atlanta federal court, accuses the airline of breaching contracts by not providing automatic refunds and only offering partial refunds if passengers agreed not to pursue further legal action.

The July 19 outage, triggered by a flawed software update from cybersecurity firm CrowdStrike, disrupted airlines, banks, hospitals, and emergency services, affecting over 8 million computers globally, including many operated by Microsoft.

Plaintiffs in the lawsuit argue that Delta’s refusal to offer full refunds and its limited compensation for rebooking expenses, hotels, food, and separated luggage are unfair practices. John Brennan from Florida, one of the four plaintiffs, shared that he and his wife missed a $10,000 anniversary cruise after being stranded in Atlanta, only receiving $219.45 in compensation from Delta.

Despite Delta’s public assurances that passengers could request and receive refunds, the lawsuit states that many customers were left waiting in long lines for days, unable to reach their destinations. The airline’s CEO, Ed Bastian, estimated the outage cost the company around $500 million, with Delta and CrowdStrike publicly disputing responsibility.

In a related move, passengers have also filed a separate class action against CrowdStrike, seeking damages. CrowdStrike has maintained that it was neither grossly negligent nor at fault for Delta’s issues.

The case, titled Bajra et al v Delta Air Lines, is being heard in the U.S. District Court for the Northern District of Georgia.

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