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Delta Sues CrowdStrike Over IT Outage, Seeking Damages After Massive Flight Cancellations

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Delta Sues CrowdStrike Over IT Outage, Seeking Damages After Massive Flight Cancellations

Delta Air Lines has filed a lawsuit against cybersecurity firm CrowdStrike, accusing the company of breach of contract and negligence after a software outage in July led to a severe IT failure, grounding millions of computers and resulting in the cancellation of 7,000 flights. The widespread disruption caused significant financial losses for Delta, amounting to $380 million in reduced revenue and $170 million in related costs.

The issue arose from a flawed software update that affected computers running Microsoft’s Windows operating system. While other airlines managed to recover from the outage more quickly, Delta struggled, prompting the Atlanta-based airline to take legal action. In addition to CrowdStrike, Delta has also included Microsoft in its lawsuit, seeking compensation for its losses, as well as punitive damages and litigation costs. Delta had retained prominent lawyer David Boies of Boies Schiller Flexner to lead the legal battle.

Delta’s complaint alleges that CrowdStrike’s software update caused a “global catastrophe” by circumventing crucial testing and certification processes. The airline claimed that if the update had been tested on just one computer, the issue could have been avoided. Delta also accused CrowdStrike of exploiting an unauthorized vulnerability in Windows, allowing the update to reach the airline’s systems despite disabling automatic updates from the software vendor.

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CrowdStrike CEO George Kurtz has publicly apologized for the incident and stated that the company is committed to preventing future occurrences. However, in response to the lawsuit, a CrowdStrike spokesperson denied Delta’s accusations, stating the airline’s claims are based on misinformation and reflect a misunderstanding of modern cybersecurity practices. The spokesperson also suggested that Delta’s IT recovery was delayed due to its outdated infrastructure, not solely because of the software failure.

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Bitcoin Surges Past $70,000 as Investors Await Earnings and U.S. Election

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Bitcoin crossed the $70,000 mark for the first time since June, as investor optimism grows ahead of MicroStrategy’s earnings release and the upcoming U.S. presidential election. The leading cryptocurrency climbed 2% to $71,048.36, while Ether, the second-largest cryptocurrency, jumped 5%.

Stocks tied to cryptocurrencies followed the upward trend, with Coinbase, a major crypto exchange, advancing 3%, and MicroStrategy, a company known for its significant bitcoin holdings, rising 5% in premarket trading. The last time Bitcoin approached this level was earlier this year in June, after hitting its all-time high of $73,797.68 in March. Although previous rallies above $70,000 were short-lived, current momentum is building as markets prepare for key financial and political events.

With the U.S. presidential election just days away, Bitcoin has traded within a narrow range between $55,000 and $70,000. However, the approaching Election Day on November 5 and the Federal Reserve’s upcoming rate policy decision on November 7 could serve as catalysts for a potential breakout. Republican nominee and former president Donald Trump has embraced the crypto industry, positioning himself as a pro-crypto candidate, while Democratic nominee Kamala Harris has been more reserved on the issue, leaving the sector divided on how her presidency might impact the industry.

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Investors are also closely monitoring earnings from Coinbase and MicroStrategy, both scheduled for Wednesday. MicroStrategy, often viewed as a proxy for bitcoin due to its large holdings, has seen its longest winning streak since 2010, with Monday’s closing price being its highest since March 15, 2000.

Bitcoin has surged 5% over the past week, putting it on track to close October with a 12% gain. The rise has been fueled by significant inflows into bitcoin ETFs, contributing to the cryptocurrency’s positive momentum as the month draws to a close.

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Amazon to End Brick-and-Mortar Same-Day Delivery Service

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Amazon to End Brick-and-Mortar Same-Day Delivery Service

Amazon has decided to shut down its Amazon Today service, which provided same-day delivery from mall-based and brick-and-mortar stores, Launched in 2022, Amazon Today allowed select retailers to offer rapid deliveries through Amazon’s contracted Flex drivers. The company will halt new developments of the service and begin winding it down, impacting around 300 employees, some of whom will be laid off with severance, while others will transition to different roles. This move reflects Amazon’s broader cost-cutting initiatives.

Despite this closure, Amazon continues to focus on expanding its same-day delivery infrastructure, which remains a crucial part of its efforts to stay competitive in the ultrafast delivery market against companies like Instacart and DoorDash. The service had included several prominent retailers such as Staples, Petco, and Fabletics.

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Musk’s $1 Million a Day Petition Drive Targets Swing State Voters

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Musk’s $1 Million a Day Petition Drive Targets Swing State Voters

Elon Musk announced a bold initiative to encourage voter participation in key swing states ahead of the next election. He will randomly award $1 million daily to registered voters who sign a petition supporting his pro-Trump political action committee (America PAC). Musk, speaking in Harrisburg, Pennsylvania, said the initiative would run until the election, with a focus on battleground states like Pennsylvania, Michigan, and Georgia. The petition aims to drive voter turnout while supporting Musk’s broader political and regulatory vision.

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