Southwest Situation Shines Light on Legal Risks & Ramifications of Outdated Tech

At the end of the year, we watched as mother nature put a major dent in holiday and other travel plans across the country. Perhaps you were among those caught in the storm – literally and metaphorically. We also watched as it went from bad to worse for Southwest Airlines and its passengers as more than 16,000 flights were cancelled. 

Southwest’s situation, however, went beyond winter weather. In this instance, it appears outdated software may be to blame. Southwest appears to not have addressed a known software issue and now its passengers have begun filing lawsuits. 

Beyond Data Breach

The situation with Southwest shines a new light on the legal risks and ramifications faced by businesses related to outdated or inadequate software and technology.

One of the most common risks of using outdated software is security breaches. As software becomes more outdated, it can become more vulnerable to malware and hackers. If a company’s confidential information is compromised, it may face legal action from customers or clients.

There are also laws pertaining to and regulating data storage which are intended to ensure data is kept securely and legally. If your business is using unsupported, outdated software you could be breaking these laws and the consequences can be catastrophic, like loss of business, damage to reputation, and legal action.  

Technical Decisions

Technology is a business investment. Deciding what kind of technology to invest in can be a difficult decision for businesses.

For Southwest Airlines, it is reported the company chose to invest in customer facing updates. This choice was made despite internal complaints about Southwest’s internal scheduling system. Most all businesses may be faced with a similar difficult decision. 

The Southwest situation is a good reminder to businesses that those with decision-making authority should invest necessary time in learning about the security or technology pieces of their organization. 

Protect Your Business

It’s safe to say business dependence on technology isn’t going away. Where to invest in technology will continue to be a challenge. The Corporate/Mergers and Acquisitions attorneys at Woods Fuller are able and ready to help you and your business understand the legal ramifications of these decisions. We encourage you to stay proactive and we welcome your questions to help you minimize the risk to your business.