Delta Air Lines Seeks Damages from CrowdStrike and Microsoft Following Major Outage

Delta Air Lines has engaged renowned attorney David Boies to pursue damages from CrowdStrike and Microsoft after a significant outage this month resulted in millions of computer crashes and thousands of flight cancellations. The incident, triggered by a software update from CrowdStrike on July 19, severely impacted various industries, particularly airlines. Following the news of Delta's legal intentions, CrowdStrike's shares dropped by as much as 5% in after-hours trading, while Microsoft’s stock remained relatively stable. The Department of Transportation is currently investigating Delta due to the widespread disruptions and service failures it experienced. Delta estimates that the outages have cost the airline between $350 million and $500 million, leading to over 176,000 requests for refunds or reimbursements after nearly 7,000 flights were canceled. Although no formal lawsuit has been filed yet, Delta is preparing to seek compensation for the financial losses incurred. David Boies, the chairman of Boies Schiller Flexner, is a high-profile attorney known for his involvement in significant legal cases, including the U.S. government's antitrust case against Microsoft and the overturning of California's ban on gay marriage. His previous clients also include controversial figures such as Harvey Weinstein and Theranos founder Elizabeth Holmes, who is currently serving time for fraud. As Delta navigates the aftermath of this incident, the airline's decision to hire Boies signals a serious approach to addressing the financial repercussions of the outage.