A passenger checks a departure screen at the Phoenix Sky Harbor Airport after the CrowdStrike outage delayed travel.
CrowdStrike's stock has plummeted 34% since a software update caused a major outage on July 19.
On Tuesday alone, the stock fell as much as 13% following reports that Delta Air Lines has hired attorney David Boies to seek compensation for damages caused by the outage.
While no lawsuit has been filed yet, Delta’s plan to seek compensation has intensified the fallout from the outage, pushing CrowdStrike shares to their lowest level of 2024.
Boies, chairman of Boies Schiller Flexner, has represented high-profile cases including Theranos founder Elizabeth Holmes, former Vice President Al Gore, and former Hollywood mogul Harvey Weinstein. He also represented the US government in the landmark antitrust case against Microsoft.
Delta's earnings are expected to drop by $350 million to $500 million this quarter due to the outage.
The airline also faced severe operational challenges, canceling 1,207 flights on the day of the outage compared to 694 cancellations by United Airlines, the next highest number. Delta continued to cancel hundreds of flights on Tuesday while other airlines had largely resumed normal operations, struggling to manually reset and reboot each affected system.
The incident has significantly impacted Delta’s reputation and operations, indicating a prolonged recovery period for the airline.
CrowdStrike's stock has plummeted 34% since a software update caused a major outage on July 19.
On Tuesday alone, the stock fell as much as 13% following reports that Delta Air Lines has hired attorney David Boies to seek compensation for damages caused by the outage.
While no lawsuit has been filed yet, Delta’s plan to seek compensation has intensified the fallout from the outage, pushing CrowdStrike shares to their lowest level of 2024.
Boies, chairman of Boies Schiller Flexner, has represented high-profile cases including Theranos founder Elizabeth Holmes, former Vice President Al Gore, and former Hollywood mogul Harvey Weinstein. He also represented the US government in the landmark antitrust case against Microsoft.
Delta's earnings are expected to drop by $350 million to $500 million this quarter due to the outage.
The airline also faced severe operational challenges, canceling 1,207 flights on the day of the outage compared to 694 cancellations by United Airlines, the next highest number. Delta continued to cancel hundreds of flights on Tuesday while other airlines had largely resumed normal operations, struggling to manually reset and reboot each affected system.
The incident has significantly impacted Delta’s reputation and operations, indicating a prolonged recovery period for the airline.