CrowdStrike says Justice Department closes investigation into IRS deal
The company says the probe covered a $32 million reseller deal with Carahsoft Technology Corp tied to a 2023 IRS purchase that was never completed.
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Chart: CRWD, one-minute prices, three sessions
CrowdStrike says the Justice Department has closed its investigation into the company's sales practices, ending a review of a $32 million deal with reseller Carahsoft Technology Corp to supply cybersecurity tools to the IRS.
The deal, first reported by Bloomberg in February 2025, closed on the last day of a fiscal quarter in 2023, but the IRS never purchased the products, a detail that raised questions about whether the sale had been booked early. Bloomberg reported the transaction was large enough that it could have determined whether CrowdStrike beat or missed Wall Street's projections for that quarter. A CrowdStrike spokesperson called any suggestion of pre-booking "demonstrably false" at the time, saying the deal had been reviewed and given a clean bill of health.
CrowdStrike shares fell 3% in February 2025 when news of the Justice Department and SEC inquiry first surfaced, according to Investing.com.
The closure, as described by the company, would remove a source of regulatory uncertainty that could have constrained CrowdStrike's growth or operations. Combined with the company's recent momentum building its AI-powered security ecosystem and expanding partnerships across major cloud and enterprise platforms, that clears a headwind just as CrowdStrike scales new products.