SAN FRANCISCO, March 03, 2022 (GLOBE NEWSWIRE) — Hagens Berman urges Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) investors who have suffered significant losses to submit your losses now. The company is investigating possible violations of securities laws.
To visit: www.hbsslaw.com/investor-fraud/ERIC
Contact a lawyer now: ERIC@hbsslaw.com
Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) Survey:
The investigation focuses on Ericsson’s statements regarding the company’s activities in Iraq and its compliance with a December 2019 Deferred Prosecution Agreement (“DPA”) with the U.S. Department of Justice regarding alleged violations of the Foreign Corrupt Practices Act.
Specifically, on February 15, 2022, Ericsson disclosed that unusual expense claims in Iraq, dating back to 2018, triggered a review that revealed concerns about compliance with the company’s code of business ethics. On February 16, 2022, it was reported that Ericsson CEO Börje Elkholm indicated that payments dating back to 2018 may have been made to purchase transport routes “through areas that have been controlled by terrorist organizations , including the Islamic State”. Then on February 27, 2022, the International Consortium of Investigative Journalists published an exposé titled “Leak Exposes Ericsson’s Secret Relationship with ISIS Amid Iraq Corruption Frenzy”. The article, based on a leaked 79-page Ericsson internal investigation report, revealed: (1) “Ericsson requested permission from the terrorist group known as the Islamic State to operate in a city controlled by Islamic State and paid to smuggle equipment into Islamic State areas on a route known as the “Speedway”;” (2) Ericsson “made tens of millions of dollars in suspicious payments during nearly a decade to support its activities in Iraq, funding slush funds, overseas trips for defense officials, and payments through intermediaries to corporate executives and possibly terrorists;” ( 3)”[t]The internal investigation describes a pattern of bribery and corruption so widespread, and corporate oversight so weak, that millions of dollars in payouts could not be substantiated; and (4) the report included summaries of 28 witness interviews and 22.5 million emails.
Then, on March 2, 2022, Ericsson announced that the DOJ had informed the company that it had violated the DPA, and that its pre-DPA disclosures about Ericsson’s activities in Iraq “were insufficient”.
Ericsson shares have lost a third of their value since these revelations.
“We’re focused on investor losses and whether Ericsson lied about its DPA compliance by doing business with ISIS,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you have invested in Ericsson and are suffering significant losses, or have knowledge that may help the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: People with nonpublic information about Ericsson should consider their options to help with the investigation or take advantage of the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30% of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ERIC@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global complex plaintiffs’ rights litigation law firm, focusing on corporate liability through class action law. The firm is home to a strong securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases that achieve real results for those harmed by negligence and fraud. of business. To learn more about the firm and its successes, visit hbsslaw.com. Follow the firm for updates and news on @ClassActionLaw.
Reed Kathrein, 844-916-0895