SAP shares fell in early trade on Wednesday following reports the German tech firm is being investigated for alleged price fixing for technology sold to the US government over the last decade.
US regulators are investigating if SAP worked with its product reseller Carahsoft to fix prices.
Per a Bloomberg report, overcharging could have impacted $2 billion in products and services sold to US government departments since 2014.
The Department of Justice (DOJ) has been investigating SAP and Carahsoft since at least 2022, the publication said.
The DOJ recently sued Carahsoft in civil court over a request to access the company’s internal communications related to SAP software, cloud storage, and related hardware and services.
SAP spokesperson Daniel Reinhardt said in a statement that the company was "not aware of any criminal investigation that SAP is involved in relating to Carahsoft."
"All we can say is that there has been a civil investigation by the DOJ, and SAP has been cooperating with the investigation since the beginning," he said.
Carahsoft was also reportedly raided by Federal Bureau of Investigation (FBI) and military investigators on Tuesday.
Carahsoft spokesperson Mary Lange said the search was for “an investigation into a company with which Carahsoft has done business in the past,” making it unclear if it was related to the SAP probe.
SAP has previously faced legal challenges related to its operations, earlier this year agreeing to pay $222 million to settle claims of bribery schemes in seven countries.
Shares of SAP were down 2.2% at US$225.80 in early trade.