$CrowdStrike (CRWD.US)$ fell 9%, the lowest on the S&P 500. The stock began moving lower late Monday following reports that $Delta Air Lines (DAL.US)$ and Microsoft were lawyering up and would seek compensation from the cybersecurity company for last week's outage. According to Morgan Stanely Analysts, the firms partners also said monday they expected a 20% drop in bookings in the future.

According to a CNBC report, Delta has hired attorney David Boies to seek damages from CrowdStrike and $Microsoft (MSFT.US)$ following an outage earlier this month that led to thousands of flight cancellations.

CrowdStrike shares are down about 33% over the past month after the company took responsibility for a major IT outage that impacted businesses across the world.

Confirming that it was not a security incident or cyberattack, CrowdStrike CEO George Kurtz said the outage was caused by "a defect found in a single content update."

CrowdStrike shares fell as much as 5% in after-hours trading on Monday. Delta has not filed a lawsuit, but reportedly plans to seek compensation for damages. CNBC reported that the outages cost Delta an estimated $350 million to $500 million.

According to the report, insurance startup Parametrix has estimated that the IT outage resulted in total losses of about $5.4 billion for Fortune 500 companies.

Needham analyst Alex Henderson maintained CrowdStrike with a Buy rating on Tuesday and lowered the price target from $425 to $375.

CrowdStrike is not due to report earnings for the second quarter until sometime near the end of August. The company is expected to report earnings of 98 cents per share and revenue of $959.985 million, according to estimates from Benzinga Pro.

CRWD Price Action: CrowdStrike shares were down 4.02% at $248.40 at the time of publication, according to Benzinga Pro.

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