Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

Ericsson beats US shareholder lawsuit over graft disclosures

Ericsson beats US shareholder lawsuit over graft disclosures

(Reuters) – Swedish telecoms company Ericsson beat a lawsuit by U.S. shareholders on Wednesday, when a federal judge ruled it did not mislead investors about its compliance with U.S. anti-bribery laws.

The lawsuit filed by a Boston-based pension fund claimed that Ericsson had overstated the extent to which it had eliminated the use of bribes after it settled corruption allegations made by the U.S. Department of Justice (DOJ).

U.S. District Judge William Kuntz in Brooklyn, New York, wrote that Ericsson had issued “ubiquitous warnings” to investors raising “the possibility of future compliance failures” after the agreement.

Commenting on the court decision, Ericsson said in a statement on Thursday, “The motion to dismiss decision is subject to appeal from the plaintiff. Ericsson will continue to vigorously defend this matter if appealed.”

The lawsuit was filed in March 2022, after the company’s stock dropped sharply following allegations by the DOJ that Ericsson was in breach of a 2019 deferred prosecution agreement (DPA) for failing to fully disclose details of its operations in Iraq. The lawsuit sought damages for investors who bought Ericsson American Depositary Shares between April 27, 2017 and March 1, 2022.

Ericsson agreed to pay $206 million and plead guilty in March for violating the DPA agreement.

Under the conditions of the 2019 DPA, Ericsson paid more than $1 billion to resolve a series of corruption probes, involving bribery allegations in China, Vietnam and Djibouti, and agreed to cooperate with the department for ongoing investigations.

The case is In re: Telefonaktiebolaget Ericsson Securities , No. 22-1167, U.S. District Court, Eastern District of New York.

 

(Reporting by Jody Godoy; additional reporting by Anna Ringstrom in Stockholm, editing by Diane Craft and Sohini Goswami)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts