- CrowdStrike's stock is down 34% since its software update caused a mass outage on July 19.
- The stock fell as much as 13% on Tuesday alone after heavily-hit Delta reportedly hired a lawyer.
The fallout of CrowdStrike's massive IT outage continues to wreak havoc on the company's stock as reports surface of potential legal action from Delta.
CrowdStrike's stock fell as much as 13% on Tuesday, extending its losses since the July 19 outage to 34% and pushing shares to their lowest level of 2024.
The continued fallout comes after CNBC reported that Delta hired attorney David Boies — chairman of Boies Schiller Flexner — to seek compensation for outage-related damages, according to CNBC.
Boies has made headlines in several high-profile cases over the last three decades, representing the likes of Theranos founder Elizabeth Holmes, former Vice President Al Gore, and former Hollywood movie mogul and convicted sex offender Harvey Weinstein. Boies also represented the US government in a landmark antitrust case against Microsoft.
Delta's earnings will drop an estimated $350 million to $500 million this quarter as a result of the outage, according to Bloomberg.
The company will likely suffer huge hits to its reputation, too, as it fared far worse than its competitors. Delta canceled 1,207 flights the day of the outage, while United, the airline with the next highest number, canceled only 694 according to data from FlightAware.
Following the Friday outage, Delta still canceled hundreds of flights on Tuesday, by when most other airlines had resumed normal operations. The company reportedly struggled to restore operations and had to manually reset and reboot each system affected by the outage.