LM Ericsson Telephone Company (“Ericsson”) was a multinational networking and telecommunications equipment and services company headquartered in Sweden. Ericsson’s common shares were registered with the SEC and traded on the NASDAQ.
On June 17, 2016, Ericsson disclosed that in March 2013, it received a voluntary request from unspecified "US Authorities" to answer a number of questions relating to Ericsson’s operations, which, according to Ericsson, the company had confirmed to local media in 2013. However, media reports at the time of the June 2016 filing noted that the 2013 media reports indictated that U.S. authorities were investigating the company's Romanian business operations. Ericsson later confirmed that the SEC's investigation began in 2013 and the DOJ's investigation began in 2015.
Ericsson indicates that it is cooperating with the US Authorities to answer these and additional questions. Ericsson has not provided any detailed comments on the government's request, or if they relate to specific regions or countries, but confirms that it relates to Ericsson’s anticorruption program and questions related to the Foreign Corrupt Practices Act.
In a 6-K filed on September 26, 2019, Ericsson announced that it had accrued 12 billion Swedish Krona in anticipation of the resolution of the investigation. This accrual covers an expected $1 billion settlement as well as other associated costs. This filing also clarified that the investigation revealed FCPA violations in six countries: China, Djibouti, Indonesia, Kuwait, Saudi Arabia, and Vietnam.
On December 6, 2019, the DOJ and SEC announced settlements with the company. Ericsson agreed to pay over $1 billion in sanctions.
On October 22, 2021, Ericsson issued a press release stating that the DOJ had informed the company that the agency had determined that Ericsson breached its obligations under the DPA by failing to provide certain documents and factual information and that Ericsson would have the opportunity to respond in writing to explain the nature and circumstances of such breach as well as how Ericsson would address and remediate the situation.
In a 6-K filed on March 2, 2022, Ericsson disclosed that the DOJ had informed the company the previous day that the disclosure made by the company prior to the DPA about its internal investigation into conduct in Iraq in the period 2011 until 2019 was insufficient and that the company breached the DPA by failing to make subsequent disclosure related to the investigation post-DPA.
In a company press release issued on December 14, 2022, Ericsson said that it had agreed to a one year extension to the corporate monitorship imposed in the 2019 settlement.
In a 6-K filed on January 12, 2023, Ericsson announced that it had accrued approximately $220 million in anticipation of a resolution with the DOJ for the alleged breaches of the DPA.
On March 2, 2023, the DOJ announced that Ericsson had entered into a new plea agreement over the DPA breach. In all, Ericsson agreed to pay an additional $207 million in fines.
