CrowdStrike's stock price drops 11% to its lowest point of the year following news of potential legal action from Delta.

• David Boies, chairman of Boies Schiller Flexner, was hired by Delta to pursue compensation from CrowdStrike and Microsoft.
• Microsoft Systems' historic IT outage caused a one-third loss in value for CrowdStrike shares, which are currently at their lowest point in 2024.
• Over 176,000 refund or reimbursement requests are being handled by Delta after nearly 7,000 flights were canceled.

On Tuesday, shares of the company tumbled to their lowest level of the year after it was reported that the company had hired prominent attorney Davide Boies to seek damages from the security software vendor.

Crowdstrike's stock price dropped $28.98 to $228.83 during early afternoon trading, resulting in a one-third loss of value since July 19, when a Microsoft Systems outage caused by a CrowdStrike software update affected multiple industries, including airlines.

On Monday, CNBC's Phil Lebeau reported that Delta hired Boies Schiller Flexner's chairman to seek compensation from Crowdstrike and . No lawsuit has been filed, and Delta declined to comment on the matter.

Over 176,000 refund or reimbursement requests have been handled by Delta after nearly 7,000 flights were canceled, resulting in an estimated loss of $350 million to $500 million.

Last week, the Department of Transportation announced that it is currently investigating Delta due to the numerous flight disruptions and service failures that have occurred.

Boies is renowned for his representation of the U.S. government in its landmark antitrust lawsuit against Microsoft and for helping secure a decision that overturned California's ban on gay marriage. He also collaborated with Harvey Weinstein, the imprisoned former Hollywood mogul, and Elizabeth Holmes, the founder of Theranos who is currently serving a prison sentence for defrauding investors.

WATCH: Delta hires attorney David Boies to seek damages