CrowdStrike & Microsoft to Face Lawsuit from Delta Air Lines Following System Crash

Delta Air Lines has enlisted the legal expertise of David Boies, chairman of Boies Schiller Flexner, to seek damages from cybersecurity firm CrowdStrike and tech giant Microsoft.

This follows a catastrophic system crash on July 19 that resulted in the cancellation of thousands of flights and left millions of computers offline.

Delta has suffered significant financial losses due to the incident, which was caused by a software update from CrowdStrike that affected Microsoft systems.

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The airline estimates the cost of the outage to be between $350 million and $500 million. Over 176,000 refund or reimbursement requests were filed after nearly 7,000 flights were canceled.

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Market Reaction and Investigations

According to the CNBC reports, the announcement of Boies’ involvement led to a sharp decline in CrowdStrike’s stock, which fell by as much as 5% in extended trading. In contrast, Microsoft’s shares remained relatively stable.

The Department of Transportation has also investigated Delta’s handling of the disruptions, which caused widespread service failures across the airline industry.

The broader impact of the outage has been staggering. Insurance startup Parametrix estimates a total loss of $5.4 billion for Fortune 500 companies, excluding Microsoft.

While no lawsuit has been officially filed yet, Delta’s intention to seek compensation underscores the severity of the incident. The involvement of David Boies, known for his high-profile cases, signals that Delta is prepared to pursue aggressive legal action.

Boies has a storied history, representing the U.S. government in its landmark antitrust case against Microsoft and playing pivotal roles in other major legal battles.

The potential lawsuit could have far-reaching implications for CrowdStrike and Microsoft as they navigate the fallout from this unprecedented system failure. As the situation develops, industry observers will closely watch how Delta, CrowdStrike, and Microsoft address the legal and financial challenges ahead.

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