San Francisco, California--(Newsfile Corp. - May 1, 2022) - Hagens Berman urges Ericsson (NASDAQ: ERIC) investors who suffered significant losses to submit your losses now. A securities fraud class action has been filed and certain Ericsson investors with significant losses have the opportunity to lead the case.
Class Period: Apr. 27, 2017 - Feb. 25, 2022
Lead Plaintiff Deadline: May 2, 2022
Visit:www.hbsslaw.com/investor-fraud/ERIC
Contact An Attorney Now:ERIC@hbsslaw.com
844-916-0895
Ericsson(NASDAQ: ERIC) Securities Class Action:
The complaint challenges Defendants' statements about Ericsson's business in Iraq and its compliance with a Dec. 2019 deferred prosecution ("DPA") agreement with the DOJ concerning alleged Foreign Corrupt Practices Act violations.
Specifically, Defendants: (1) overstated the extent to which Ericsson reformed its business practices to eliminate the use of bribes to secure business in foreign countries; (2) concealed bribes the company paid to ISIS to gain access to certain transport routes in Iraq; and, (3) omitted to disclose that revenues from Ericsson's Iraq operations were, in substantial part, unlawful and therefore unsustainable.
On Feb. 15, 2022, Ericsson revealed unusual expense claims in Iraq, dating back to 2018, had triggered an internal review that uncovered concerns about compliance with the company's Code of Business Ethics.
On Feb. 16, 2022, Ericsson's CEO (Börje Elkholm) reportedly told a Swedish newspaper that payments dating back to 2018 may have been made to purchase transportation routes "through areas that have been controlled by terrorist organizations, including ISIS."
Then, on Feb. 27, 2022, the International Consortium of Investigative Journalists published an expose based on a 79-page leaked Ericsson internal investigation report that revealed: (1) "Ericsson sought permission from the terrorist group known as the Islamic State to work in an ISIS-controlled city and paid to smuggle equipment into ISIS areas on a route known as the 'Speedway;'" (2) Ericsson "made tens of millions of dollars in suspicious payments over nearly a decade to sustain its business in Iraq, financing slush funds, trips abroad for defense officials and payoffs through middlemen to corporate executives and possibly terrorists;" and, (3) "[t]he internal investigation describes a pattern of bribery and corruption so widespread, and company oversight so weak, that millions of dollars in payments couldn't be accounted for."
Most recently, on Apr. 14, 2022, Ericsson acknowledged that its misconduct in Iraq started at least back in 2011 and a resolution with the DOJ regarding the DPA breaches "may likely include additional monetary payments."
"We're focused on investors' losses and proving Ericsson lied about its compliance with the DPA by doing business with ISIS," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Ericsson and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Ericsson should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ERIC@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/122324
