Publicly available legal documents or official statements from Delta, Microsoft, or CrowdStrike

Delta Seeks $500M Compensation from Microsoft, CrowdStrike After IT Outage, Hires David Boies

Jul 30, 2024, 07:24 PM

Delta Air Lines has hired prominent attorney David Boies to seek compensation from Microsoft and CrowdStrike following a global IT outage on July 19 that caused significant disruptions earlier this month. The outage, which stemmed from a CrowdStrike software update, resulted in the cancellation of nearly 7,000 flights and is estimated to have cost Delta approximately $500 million. The airline's CEO, Ed Bastian, confirmed the financial impact and emphasized the need to pursue damages. In response to the news, CrowdStrike's shares have plummeted, reaching their lowest levels of the year, down 34% and 11% in recent trading. The outage also affected millions of computers, including those of Fortune 500 companies, and required the manual reset of 40,000 servers. Delta's legal action underscores the severe repercussions of the tech failure on its operations and financial health.