Delta Lawyers Up Over CrowdStrike, Microsoft Debacle

Said to have lost up to $500M in computer outage, airline hires attorney David Boies
By Arden Dier,  Newser Staff
Posted Jul 30, 2024 1:31 PM CDT
Delta to Pursue Damages From Microsoft, CrowdStrike
A Delta Air Lines jet leaves the gate during a global technology outage at Logan International Airport, Friday, July 19, 2024, in Boston.   (AP Photo/Michael Dwyer)

Delta Air Lines has lawyered up as it seeks to address the cause of nearly 7,000 flight cancellations and hundreds of complaints. The airline was among the worst affected by a faulty computer update from cybersecurity firm CrowdStrike. The computer issues and resulting cancelations are believed to have cost Delta, currently navigating some 176,000 refund or reimbursement requests, between $350 million to $500 million, per CNBC. The airline plans to seek compensation from both Microsoft and CrowdStrike and has hired famed attorney David Boies in that quest, per the outlet. Boies represented the US government in its landmark antitrust case against Microsoft. Previous clients also include Hollywood producer Harvey Weinstein and Theranos founder Elizabeth Holmes.

CrowdStrike's shares fell more than 8% on Tuesday following CNBC's report, Reuters reports. Its stock has fallen over 24% since the July 19 outage, "leading to a loss of over $20 billion in market valuation," according to the outlet. A recent survey by Evercore ISI found clients are considering pausing spending with the cybersecurity company in light of what happened.

"Nearly everyone agreed that they expect some form of monetary relief, such as discounts, service revenue credits, or free products," the brokerage said Tuesday, adding it appears CrowdStrike is already discussing relief with customers. Insurance startup Parametrix has estimated Fortune 500 companies excluding Microsoft lost a combined $5.4 billion as a result of the outage. (CrowdStrike initially offered clients a $10 voucher.)

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