02:53 PM EDT, 10/25/2024 (MT Newswires) -- CrowdStrike ( CRWD ) said in a blog post Friday that a Bloomberg report regarding a software order received from Carahsoft is misleading.

The cybersecurity firm said it received a "bona fide, signed, non-cancellable purchase order from Carahsoft" in October 2023 and that the order specifically referenced the Internal Revenue Service.

Bloomberg said the two companies had struck a deal in 2023 for identity threat protection software intended for the IRS, but the tax agency never acquired the software, which raises potential red flags about the contract between the two companies.

CrowdStrike ( CRWD ) received an order valued at $32 million for the software from Carahsoft, which operates as a middleman between technology firms and public agencies, and has been receiving payments on the order from Carahsoft, the report said citing CrowdStrike ( CRWD ).

The report said various accounting and legal experts believe the deal between the two companies should be scrutinized by regulators. The arrangement also caused concerns to surface within CrowdStrike ( CRWD ), the report said citing the company and people familiar with the matter.

CrowdStrike ( CRWD ) defended its accounting on the transaction and deemed as false any assertion that it "pre-booked" the transaction.

Carahsoft did not immediately respond to MT Newswires' requests for comment.

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