Caterpillar Shares Tumble By The Most In 8 Months On Reports Of a Law-enforcement Investigation

By Mark DeCambre Markets MarketWatch Pulse

Shares of Caterpillar Inc. were down almost 5% Thursday afternoon amid reports that federal officials were searching three of the company's offices, including its Peoria, Ill., headquarters. A report from the Wall Street Journal said search warrants were being executed at Caterpillar facilities in East Peoria and Morton. "Law enforcement is present in various Peoria-area Caterpillar facilities executing a search warrant," a CAT spokeswoman told the WSJ. "Caterpillar is cooperating," she said. Shares of Caterpillar were down nearly 5%, marking its worst one-day decline in about eight months and cutting about 30 points from the Dow Jones Industrial Average of which it is a component. The Internal Revenue Service, the Commerce Department and the Federal Deposit Insurance Corp., are a part of the investigation. According to WSJ, the probe is believed to be tied to an investigation overseen by the US Attorney's Office for the Central District of Illinois.

Continue Reading Below

Copyright © 2017 MarketWatch, Inc.