Ericsson to pay $1B-plus to settle U.S. corruption probe, DoJ says

Ericsson (NASDAQ:ERIC) agrees to plead guilty to a conspiracy charge and pay more than $1B to resolve the U.S. government’s investigation into violations of the Foreign Corrupt Practices Act, the Department of Justice announces.

The total includes a criminal penalty of more than $520M and another $540M to be paid to the Securities and Exchange Commission in a related matter.

Ericsson admitted it had conspired with others to violate the FCPA by engaging in a longstanding scheme to pay bribes, falsify books and records, and fail to implement reasonable internal accounting controls, the DoJ says, adding that the company used third party agents and consultants to make bribe payments to government officials and/or to manage off-the-books slush funds.

Ericsson said in September it would take a $1.2B charge to cover related monetary sanctions and other costs.


Leave a Reply