watch
now
Delta
Air
Lines
has
hired
prominent
attorney
David
Boies
to
seek
damages
from
CrowdStrike
and
Microsoft
following
an
outage
this
month
that
caused
millions
of
computers
to
crash,
leading
to
thousands
of
flight
cancellations.
CrowdStrike
shares
fell
as
much
as
5%
in
extended
trading
on
Monday
after
CNBC’s
Phil
Lebeau
reported
on
Delta’s
hiring
of
Boies,
chairman
of
Boies
Schiller
Flexner.
Microsoft
was
little
changed.
On
July
19,
a
software
update
from CrowdStrike led
to a
historic
outage
of
Microsoft
systems,
knocking
numerous
industries
offline.
Airlines
were
particularly
hard
hit,
and
the
Department
of
Transportation
said
last
week
that
it’s
investigating
Delta,
which
suffered
widespread
flight
disruptions
and
service
failures.
CrowdStrike
lost
almost
one-quarter
of
its
value
in
two
trading
days
on
concerns
about
the
company’s
business
following
the
incident.
While
no
suit
has
been
filed,
Delta
plans
to
seek
compensation
from
Microsoft
and
CrowdStrike,
Lebeau
reported.
Delta
hasn’t
responded
to
a
request
for
comment.
The
outages
cost
Delta
an
estimated
$350
million
to
$500
million.
Delta
is
dealing
with
over
176,000
refund
or
reimbursement
requests
after
almost
7,000
flights
were
canceled.
Boies
is
known
for
representing
the
U.S.
government
in
its
landmark
antitrust
case
against
Microsoft
and
for
helping
win
a
decision
that
overturned
California’s
ban
on
gay
marriage. He
also
worked
with
Harvey
Weinstein,
the
imprisoned
former
Hollywood
mogul,
and
Theranos
founder
Elizabeth
Holmes,
who
is
currently
serving
a
prison
sentence
for
defrauding
investors.
Insurance
startup
Parametrix
estimated
that
the
CrowdStrike
incident
resulted
in
a
total
loss
of
$5.4
billion
for
Fortune
500
companies,
not
including
Microsoft.
watch
now
