DOJ, SEC investigating $32 million CrowdStrike deal with Carahsoft.
US prosecutors and regulators are investigating a $32 million deal between CrowdStrike Holdings Inc. and a technology distributor to provide cybersecurity tools to the Internal Revenue Service.
Investigators for the Justice Department and the Securities and Exchange Commission have been interviewing people and collecting records related to the deal, according to the document and people. They spoke on condition of anonymity because they are not authorized to discuss the matter.
Carahsoft Technology Corp. paid CrowdStrike for the deal that the cybersecurity firm closed on the last day of a fiscal quarter in 2023, but the IRS never purchased the products.
The transaction under investigation was big enough that it could have made the difference between CrowdStrike beating or missing Wall Street projections for the period, although the Austin, Texas-based company has declined to detail how it accounted for the deal. The day after CrowdStrike reported results for the record quarter, its shares rose 10%.
