Delta Demands Compensation for Microsoft Cyber Outage

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Delta Demands Compensation for Microsoft Cyber Outage
Travelers wait in line on the check-in floor of the Delta Air Lines terminal at Los Angeles International Airport (LAX) on July 23, 2024 in Los Angeles, California. Mario Tama/Getty Images

Delta Airlines has hired David Boies, prominent attorney and chair of law firm Boies Schiller Flexner, in order to seek damages from CrowdStrike and Microsoft after an outage this month that caused millions of computers to crash, including those in airports.

CNBC reported that CrowdStrike's shares fell by as much as 5% in extended trading Monday (July 29), while Microsoft's shares only moved a little.

It is understood that the outages cost Delta between $350 million and $500 million, and has been dealing with over 176,000 refund or reimbursement requests for almost 7,000 canceled flights.

Delta Seeks Compensation for CrowdStrike Outage

It could be recalled that a CrowdStrike software update resulted in a historic outage of Microsoft systems, which crippled multiple industries, including the aviation and air travel industries.

As a result, Crowdstrike lost almost 25% of its value in two trading days on concerns about the company's business following the incident.

No lawsuit has been filed just yet, but Delta planned to seek compensation from Microsoft and Crowdstrike.

Boies became famous for becoming a prosecutor on behalf of the United States government in its antitrust case against Microsoft, as well as for helping win a decision that overturned California's ban on gay marriage. He also became a defense lawyer for disgraced Hollywood mogul Harvey Weinstein and convicted tech boss Elizabeth Holmes.

Tags
Air travel, Microsoft, Delta Airlines, US

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