Federal law enforcement agents are currently raiding Caterpillar’s headquarters in downtown Peoria, Illinois, and two other locations.
The agencies searching the offices include the IRS’s Criminal Investigation Division and the Federal Deposit Insurance Corporation’s Office of Inspector General.
Though federal authorities refuse to comment on the reason for the search, the raid is thought to be part of a criminal investigation into allegations that Caterpillar shifted assets overseas in order to avoid paying taxes in the U.S.
Many employees — particularly those in accounting and tax divisions — have been sequestered on the Caterpillar campus while other employees have been sent home.
Caterpillar says that it is cooperating with the investigation.
Caterpillar’s stocks have taken a dramatic tumble as news of the raid spread, falling 5% and continuing to decline.
— Forbes (@Forbes) March 2, 2017