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CrowdStrike Investigation Closed by US Justice Department Without Charges
Summary
The U.S. Department of Justice has concluded its investigation into the distributor deals of cybersecurity firm CrowdStrike without filing charges, according to a report. The status of a parallel probe by the Securities and Exchange Commission remains unknown.
U.S. federal prosecutors have closed an investigation into the distributor deals of cybersecurity firm CrowdStrike Holdings Inc. (CRWD) without pursuing any charges, according to a Bloomberg report on Friday.
The development removes a significant legal uncertainty for the company, which had been under scrutiny by federal authorities since early 2025.
Details of the Probe
The Department of Justice (DOJ) had been examining CrowdStrike's accounting practices and handling of transactions with certain distributor partners. The company had previously disclosed in regulatory filings that it was cooperating with information requests from both the DOJ and the Securities and Exchange Commission (SEC).
According to the Bloomberg report, which cited individuals with knowledge of the matter, attorneys from the Manhattan U.S. attorney's office informed parties connected to the case in July that the review was complete. The prosecutors reportedly did not provide a reason for their decision to close the investigation without taking any criminal or civil action.
AdSEC Inquiry Status Unknown
While the conclusion of the DOJ's probe is a positive development for CrowdStrike, the status of the parallel inquiry by the SEC has not been publicly clarified.
In an August regulatory filing, the Austin, Texas-based company confirmed it was cooperating with both agencies regarding its accounting for "transactions with certain customers." The closing of the DOJ investigation may alleviate investor concerns, but the unresolved SEC matter remains a point of attention for the market.
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