The Class: Shareholder rights law firm Robbins LLP is investigating Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) and its officers and directors to determine if the Company made false and misleading statements to the investing public. Ericsson, along with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecommunications and other sectors.
If you would like more information about our investigation of Telefonaktiebolaget LM Ericsson's misconduct, click here.
What is this Case About: On February 15, 2022, Ericsson issued a press release detailing its work in Iraq and noting "[u]nusual expense claims in Iraq, dating back to 2018, triggered a review that uncovered compliance concerns about breaches of the company's Code of Business Ethics." The press release provided details of the investigation and the outcomes, including terminating employees and third-party relationships and continued evaluation of the Company's remediation plans.
On February 16, 2022, news outlets reported that Ericsson may have made payments to the ISIS terrorist organization to gain access to certain transport routes in Iraq. On this news, Ericsson's ADS price fell $1.44 per share, or 11.57%, to close at $11.01 per ADS on February 16, 2022.
Then, on February 27, 2022, the International Consortium of Investigative Journalists published a report on Ericsson's alleged dealings with ISIS in Iraq, revealing that Ericsson had reportedly made "tens of millions of dollars in suspicious payments" over nearly a decade to keep its business in the country. The report also alleged that "a spreadsheet lists company probes into possible bribery, money laundering and embezzlement by employees in Angola, Azerbaijan, Bahrain, Brazil, China, Croatia, Libya, Morocco, the United States and South Africa[,]" which "have not been previously disclosed." On this news, Ericsson's ADS prices fell $0.84 per ADS, or 8.3%, to close at $9.28 per ADS on February 28, 2022.
Next Steps: If you acquired shares of Ericsson (ERIC) between April 27, 2017 and February 25, 2022, you have legal options. Contact us for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Telefonaktiebolaget LM Ericsson settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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