Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Ericsson To Contact Him Directly To Discuss Their Options
NEW YORK, NY - (NewMediaWire) - April 28, 2022 - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Telefonaktiebolaget LM Ericsson (“Ericsson” or the “Company”) (NASDAQ: ERIC) and reminds investors of the May 2, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Ericsson stock or options between April 27, 2017 and February 25, 2022 and would like to discuss your legal rights, Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: .
There is no cost or obligation to you.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Ericsson overstated the extent to which it had reformed its business practices to eliminate the use of bribes to secure business in foreign countries; (2) Ericsson had paid bribes to the terrorist group the Islamic State in Iraq and Syria (“ISIS” or the “Islamic State”) to gain access to certain transport routes in Iraq; (3) accordingly, the Company’s revenues derived from its operations in Iraq were, in at least substantial part, derived from unlawful conduct and thus unsustainable; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On February 15, 2022, during intraday trading hours, Ericsson issued a press release disclosing media inquiries into its business dealings in Iraq. That press release assured investors of the Company’s “transparency” regarding these inquiries, while vaguely alluding to having undertaken its own investigative and compliance efforts.
Then, on February 16, 2022, Ericsson’s Chief Executive Officer (“CEO”) told a Swedish newspaper that the Company may have made payments to ISIS to gain access to certain transport routes in Iraq, noting that the Company had identified “unusual expenses dating back to 2018” but had not yet determined the final recipient of the funds for those expenses, although Defendants could “see that it disappeared[,]” and that Ericsson has spent “considerable resources trying to understand this as best we can.”
Following these disclosures, Ericsson’s American Depositary Share (“ADS”) price fell $1.44 per ADS, or 11.57%, to close at $11.01 per ADS on February 16, 2022
Finally, on Sunday, February 27, 2022, the International Consortium of Investigative Journalists (“ICIJ”) published a report on Ericsson’s alleged dealings with ISIS in Iraq, citing a leaked internal investigation that revealed 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 ICIJ 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 price fell $0.84 per ADS, or 8.3%, from its closing price on February 25, 2022, to close at $9.28 per ADS on February 28, 2022, the next trading day.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Ericsson’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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