CrowdStrike shares plummeted 11% on Tuesday, marking their lowest point of the year, following news that Delta Air Lines has enlisted prominent attorney David Boies to pursue damages from the cybersecurity firm.
By early afternoon trading, CrowdStrike's stock had fallen $28.98 to $228.83, continuing a sharp decline that began on July 19. This downturn was triggered by a historic Microsoft systems outage caused by a software update from CrowdStrike, which disrupted numerous industries, including airlines.
Phil Lebeau reported that Delta hired Boies, chairman of Boies Schiller Flexner, to seek compensation from both CrowdStrike and Microsoft. Although no lawsuit has been filed yet, Delta did not respond to requests for comment.
Delta is currently processing over 176,000 refund or reimbursement requests after nearly 7,000 flights were canceled due to the outages. The airline estimates the disruptions have cost them between $350 million and $500 million. The Department of Transportation is also investigating Delta due to the widespread flight disruptions and service failures.
David Boies is a high-profile attorney known for his role in the U.S. government's landmark antitrust case against Microsoft and for helping overturn California's ban on gay marriage. However, his career also includes representing controversial figures like Harvey Weinstein and Theranos founder Elizabeth Holmes.
With Delta’s legal action looming and the ongoing federal investigation, the fallout from the July 19 outage continues to create significant turbulence for CrowdStrike. This situation highlights the high stakes involved in cybersecurity failures and their far-reaching impacts on businesses and consumers alike.
