Delta engages David Boies to pursue compensation from CrowdStrike, Microsoft following system disruption

• On Monday, CNBC's Phil Lebeau reported that Delta has engaged prominent attorney David Boies to seek damages from CrowdStrike and Microsoft following a recent mass outage.
• CrowdStrike shares were trading lower in extended trading.
• The outages cost Delta an estimated $350 million to $500 million.

David Boies, a prominent attorney, has been hired by to seek damages from and following the outage this month that resulted in millions of computers crashing and thousands of flight cancellations.

On Monday, CrowdStrike shares dropped by up to 5% in extended trading following news that Delta had hired Boies Schiller Flexner's chairman, Phil Lebeau, as a legal advisor. Meanwhile, Microsoft remained unchanged.

Microsoft systems experienced a historic outage on July 19 due to a software update from CrowdStrike. Numerous industries were affected, with airlines being particularly hard hit. The Department of Transportation is currently investigating Delta, which suffered widespread flight disruptions and service failures.

In two trading days, CrowdStrike's value dropped by almost a quarter due to worries about its business following the incident.

Delta intends to pursue compensation from Microsoft and CrowdStrike, according to Lebeau, although no lawsuit has been filed yet. Delta has not responded to a request for comment.

Almost 7,000 Delta flights were canceled, resulting in over 176,000 refund or reimbursement requests and an estimated cost of $350 million to $500 million.

Boies is recognized for his representation of the U.S. government in the landmark antitrust lawsuit against Microsoft and for helping secure a decision that overturned California's ban on gay marriage. Additionally, he has worked with disgraced Hollywood mogul Harvey Weinstein and Theranos founder Elizabeth Holmes, who is currently serving a prison sentence for defrauding investors.

CrowdStrike incident resulted in a total loss of $5.4 billion for Fortune 500 companies, except Microsoft, according to insurance startup Parametrix.

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