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Caterpillar's reputation remains strong despite raid by feds

MARK FORSTER, CORRESPONDENT EDITOR, LE 4 MARS 2017

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Caterpillar's reputation remains strong despite raid by feds

The heavy machine-maker’s brand will likely remain unscathed a day after federal authorities raided its headquarters and a slight dip in its share price.

Despite the national headlines the raid seems to have little impact on the company’s reputation.

A former federal prosecutor has called the raid ’uncommon’ and said there are only two reasons why federal agents might seek a search warrant: if the agency believe it will not receive the records from a subpoena or if it believes the records could be destroyed or disappear.

CEO Jim Umpleby told employees Thursday in a memo that the company "... was surprised by today’s actions primarily because we have been so cooperative with the authorities in this investigation. We have acted in good faith and as a good corporate citizen. That will not change."

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