SAN FRANCISCO, April 30, 2022 (GLOBE NEWSWIRE) — Hagens Berman urges Ericsson (NASDAQ: ERIC) investors who have suffered significant losses to submit your losses now. A securities fraud class action lawsuit has been filed and some Ericsson investors who suffered significant losses are given the opportunity to pursue the case.
Ericsson (NASDAQ: ERIC) Securities Class Action:
The Complaint challenges Defendants’ statements regarding Ericsson’s activities in Iraq and its compliance with a December 2019 Deferred Prosecution Agreement (“DPA”) with the DOJ regarding alleged violations of the Corrupt Practices Act at the foreign.
Specifically, the defendants: (1) exaggerated 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 transportation routes in Iraq; and, (3) failed to disclose that revenues from Ericsson’s operations in Iraq were, in large part, illegal and therefore unsustainable.
On February 15, 2022, Ericsson disclosed that unusual refund requests in Iraq, dating back to 2018, triggered an internal review that revealed concerns about compliance with the company’s code of business ethics.
On February 16, 2022, the CEO of Ericsson (Börje Elkholm) reportedly told a Swedish newspaper 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 expose based on a 79-page internal Ericsson investigative report which found: (1) “Ericsson requested permission from the terrorist group known as the Islamic State to operate in a city controlled by the State and paid to smuggle material into Islamic State areas along a road known as the ‘Speedway’;” (2) Ericsson “made tens of millions of dollars in suspicious payments for 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;” and, (3)”[t]The internal investigation describes a pattern of bribery and corruption so widespread, and corporate oversight so weak, that millions of dollars in payments could not be substantiated.”
Most recently, on April 14, 2022, Ericsson acknowledged that his misconduct in Iraq began at least in 2011 and that a resolution with the DOJ regarding DPA violations “could likely include additional monetary payments.”
“We are focused on investor losses and evidence that 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 [email protected]
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