Delta Air Lines is taking legal action against Microsoft and CrowdStrike following a software outage that caused widespread disruption to its operations earlier this month. The airline has hired renowned lawyer David Boies to seek damages from the two tech giants, blaming them for a software update that led to millions of computers crashing and thousands of flights being cancelled.
On July 19th, a software update from CrowdStrike triggered a major outage of Microsoft systems, affecting numerous industries across the globe. Airlines were particularly hard hit, with Delta suffering significant disruption to its flight schedules and customer service. The US Department of Transportation is currently investigating the incident.
Following the outage, CrowdStrike's share price plummeted, losing almost a quarter of its value within two trading days as investors expressed concerns about the company's future. While no legal action has been filed yet, Delta has confirmed its intention to seek compensation from both Microsoft and CrowdStrike.
The airline has estimated that the outage cost it between £280 million and £400 million, with over 176,000 refund or reimbursement requests following the cancellation of almost 7,000 flights.
David Boies, chairman of Boies Schiller Flexner, is a prominent figure in the legal world. He is known for representing the US government in its landmark antitrust case against Microsoft and for helping to overturn California's ban on same-sex marriage. Boies has also represented other high-profile individuals, including disgraced Hollywood mogul Harvey Weinstein and Theranos founder Elizabeth Holmes.
Insurance startup Parametrix estimates that the CrowdStrike incident resulted in a total loss of £4.3 billion for Fortune 500 companies, excluding Microsoft. The incident has sparked a wider conversation about the potential risks associated with software updates and the importance of robust cybersecurity measures.
While Microsoft has remained relatively unaffected by the potential lawsuit, CrowdStrike has seen a significant drop in its share price. It remains to be seen how the legal proceedings will unfold and what impact they will have on the two technology giants.
