Delta engages David Boies for pursuing compensation from CrowdStrike, Microsoft following the outage

Delta Air Lines has recruited the renowned lawyer David Boies for its legal campaign to obtain compensation from both CrowdStrike and Microsoft, following a significant disruption.

CrowdStrike’s stock experienced a downturn

This disruption, occurring earlier in the month, led to a widespread computer system crash causing the airline to cancel numerous flights.

After the announcement of Boies’ engagement, detailed by CNBC’s Phil LeBeau, CrowdStrike’s stock experienced a downturn, dropping by up to 5% during after-hours trading. Microsoft, in contrast, saw no significant stock movement.

Software update from CrowdStrike caused a major failure in Microsoft’s systems

The core of the issue was a software update from CrowdStrike on July 19, which unexpectedly caused a major failure in Microsoft’s systems, affecting a wide range of sectors.

The airline industry was among the hardest hit, with the Department of Transportation acknowledging the severe impact on Delta through flight delays and cancellations.

Delta intends to claim losses from both CrowdStrike and Microsoft

Though legal action has yet to be initiated, Delta intends to claim losses from both CrowdStrike and Microsoft, as CNBC’s LeBeau noted. Delta’s outreach for comments has yielded no response at this time.

The financial toll on Delta is estimated between $350 million and $500 million, with the airline processing upwards of 176,000 requests for refunds or compensations due to the cancellation of nearly 7,000 flights.

The incident’s repercussions extended beyond Delta

Boies is a prominent figure in legal circles, having represented the U.S. government in a historic case against Microsoft and played a pivotal role in overturning California’s same-sex marriage ban.

He has also been associated with high-profile figures including Harvey Weinstein and Elizabeth Holmes, both of whom have faced legal repercussions.

Moreover, the incident’s repercussions extended beyond Delta, with a report from insurance startup Parametrix estimating a staggering $5.4 billion loss to Fortune 500 companies, excluding Microsoft, due to the CrowdStrike mishap.