CrowdStrike has limited liability in potential lawsuit after IT outage, Morgan Stanley says
** Shares of cybersecurity firm CrowdStrike CRWD.O up 2.6% at $245.55
** Brokerage Morgan Stanley says its conversations with legal experts suggest limited liability for CRWD in a potential lawsuit after global IT outage
** CRWD's contracts tend to cover situations like technology outages - brokerage
** The exception would be if Delta Air Lines DAL.N could prove gross negligence or misconduct on CRWD's behalf; this may be difficult to prove, given industry standards for software updates appear to have been followed - brokerage
** Last week, DAL said it was pursuing legal claims against CRWD and Microsoft MSFT.O after a global outage last month caused mass flight cancellations
** Impacts from CRWD's recent outage were overall "far less meaningful" for many customers, besides Delta - brokerage
** Brokerage says financial impact for CRWD likely to be limited to some service credits and contract concessions, among others
** Up to last close, CRWD down ~6% YTD
Reporting by Jaspreet Singh in Bengaluru
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