U.S. prosecutors have closed an investigation into CrowdStrike Holdings ($CRWD) without bringing criminal or civil action, according to Bloomberg. The probe examined CrowdStrike's revenue recognition and reporting around customer transactions, including a $32 million 2023 deal with distributor Carahsoft for cybersecurity software intended for the IRS that the agency ultimately did not purchase or receive.
- CrowdStrike's latest SEC filing confirms DOJ and SEC requests concerning revenue recognition and annual recurring revenue reporting for transactions with certain customers; the status of the SEC investigation remains unclear.
- Bloomberg reported that some employees questioned whether the $32 million Carahsoft transaction was complete when booked; CrowdStrike has said those concerns were baseless and the deal underwent extensive review.
- CrowdStrike's latest Q3 lobbying disclosures show $750,000 across its in-house operation and five outside firms, covering cybersecurity, AI, defense and federal appropriations issues. CrowdStrike's federal lobbying activity included contacts with Congress, the White House, DOD, OMB, Treasury and ODNI.
- President Donald Trump's financial disclosures report six CrowdStrike purchases since May, including a $500,001-$1 million purchase on July 20.
Relevant Companies
- CrowdStrike ($CRWD) - DOJ closed its investigation without enforcement action; the status of the SEC inquiry remains unclear.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
