Delta Air Lines, Inc. DAL shares are trading lower today. The company is reportedly being sued by passengers who allege the carrier refused to issue full refunds following delays or cancellations caused by last month’s major computer outage.
Passengers accused Delta of breaching their contract by failing to provide automatic refunds and offering only partial refunds in exchange for waivers against further legal claims, reported Reuters.
They also argued that Delta should compensate them for rebooking costs, hotel and food expenses, and the inconvenience of being separated from their luggage.
One of the plaintiffs, John Brennan of Florida, claimed that he and his wife missed a $10,000 anniversary cruise after being stranded in Atlanta on a layover, but Delta only offered $219.45 in compensation, the report highlighted.
The lawsuit said the airline’s “unfair, unlawful, and unconscionable practices resulted in Delta unjustly enriching itself at the expense of its customers.”
Joseph Sauder, a lawyer for the plaintiffs, said in an email, “Delta’s passengers remained stranded, waiting in lines for days trying to get to their destinations….When our clients sought refunds, Delta again failed to deliver.”
On Wednesday, the proposed class action was made public in Atlanta federal court following the July 19 outage that disrupted several services.
Last month, several major airlines canceled thousands of flights over the weekend following a faulty software update from CrowdStrike Holdings, Inc. CRWD, which resulted in global tech outages.
Notably, Delta faced a $500 million financial hit due to the system failure, triggering a federal investigation into the airline’s response. The airline is now seeking damages from Microsoft Corp. MSFT and CrowdStrike.
According to Benzinga Pro, DAL stock has lost around 19% in the last 12 months. Investors can gain exposure to the stock via the U.S. Global Jets ETF JETS and the Defiance Hotel, Airline, and Cruise ETF CRUZ.
Price Action: DAL stock is up 0.48% at $37.50 premarket at the last check Thursday.
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