NEW YORK–(BUSINESS WIRE)–March 2, 2022–
Labaton Sucharow, an award-winning, nationally ranked shareholder rights law firm, announces that it is investigating potential violations of federal securities laws by Ericsson (“Ericsson” or “the Company”) ( NASDAQ: ERIC).
On February 15, 2022, Ericsson issued a statement revealing 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.
Ericsson’s statement further revealed that a subsequent investigation into the conduct of Ericsson employees, vendors and suppliers in Iraq during the period 2011-2019, revealed serious violations of the code of business ethics and other compliance rules, and identified evidence of corruption-related misconduct, including making a monetary donation without a clear beneficiary; pay a supplier for work with no defined scope or documentation; use vendors to make cash payments; fund inappropriate travel and expenses; and the misuse of commercial agents and consultants.
In addition, the investigation revealed violations of Ericsson’s internal financial controls; conflicts of interest; failure to comply with tax laws; and hindering the investigation. He also identified payments to middlemen and the use of alternative transport routes as part of bypassing Iraqi customs, at a time when terrorist organizations, including IS, controlled certain transport routes. Payment patterns and cash transactions that could create a risk of money laundering were also identified.
On February 16, 2022, it was reported that Ericsson Chief Executive Borje Elkholm informed Danish newspaper Dagens Industri that payments dating back to 2018 may have been made to purchase transport routes “through areas that have been controlled by terrorist organizations, including ISIS”.
In response to these disclosures, ERIC stock price fell nearly 15% at 10:45 a.m. EST on February 16, 2022.
If you currently hold ERIC stock or options and have suffered a loss, Click here to participate.
If you would like to receive additional information and protect your investments free of charge, please contact David J. Schwartz toll-free (800) 321-0476 or by email at david@labaton.com.
About the firm
Labaton Sucharow LLP is one of the world’s leading complex litigation firms representing clients in the areas of securities, corporate governance and shareholder rights, consumer, cybersecurity and privacy litigation. data, as well as the representation of whistleblowers. Labaton Sucharow has been recognized for his excellence by the courts and his peers, and he is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE and Washington, DC More information about Labaton Sucharow is available at labaton.com.
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CONTACT: David J. Schwartz
(800) 321-0476
david@labaton.com
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL LEGAL SERVICES
SOURCE: Labaton Sucharow
Copyright BusinessWire 2022.
PUB: 02/03/2022 11:00 a.m. / DISC: 02/03/2022 11:02 a.m.
Copyright BusinessWire 2022.
