Delta Air Lines has hired renowned attorney David Boies to seek damages from CrowdStrike and Microsoft following this month’s disruption that caused thousands of flights to be canceled and millions of computers to crash.
Famous lawyer David Boies has been retained by Delta Air Lines to pursue damages against CrowdStrike and Microsoft in the wake of this month’s outage that resulted in millions of computers crashing and thousands of flights being canceled. Monday’s extended trading saw a 5% decline in CrowdStrike shares following a story by Phil Lebeau regarding Delta’s employment of Boies, the chairman of Boies Schiller Flexner. Microsoft barely changed.
On July 19, a CrowdStrike software update caused a massive Microsoft system outage that brought down multiple industries. Airlines were especially badly impacted; this Monday, the Department of Transportation announced that it was looking into Delta, which experienced numerous service issues and disruptions to flights. In two trading days, CrowdStrike’s worth dropped by over 25% due to worries about the company’s operations in the wake of the incident. Lebeau reported that Delta intends to pursue reimbursement from Microsoft and CrowdStrike, even though no lawsuit has been filed. A request for response from Delta has not been answered.
Delta lost between $350 million and $500 million as a result of the interruptions. Following the cancellation of nearly 7,000 flights, Delta is currently handling approximately 176,000 claims for refunds or reimbursements. Boies is well-known for having defended the United States in its historic antitrust lawsuit against Microsoft and for having contributed to the ruling that invalidated California’s law against homosexual marriage. He also collaborated with Elizabeth Holmes, the founder of Theranos, who is incarcerated for misleading investors, and Harvey Weinstein, the former Hollywood mogul who is currently in prison.
Without factoring in Microsoft, insurance startup Parametrix calculated that the CrowdStrike incident cost Fortune 500 organizations a total of $5.4 billion in losses.
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