Ericsson Brings 2019 DPA Breaches To An End, Agrees To Pay $206.7M Fine

Akanksha Bakshi
·1 min read

  • Ericsson (NASDAQ: ERIC) agrees to enter a guilty plea regarding deferred charges relating to conduct before 2017 and to pay ~$207 Million in settlement to the U.S. Department of Justice (DOJ).

  • The entry of the plea agreement brings the 2019 Deferred Prosecution Agreement (DPA) to an end.

  • In 2019, Ericsson entered into the DPA to resolve previously disclosed Foreign Corrupt Practices Act (FCPA) violations relating to conduct in several countries between 2010 and 2016.

  • Related: Ericsson Sells Of Russian Customer Support Business; Agrees To Regulatory Extension Of Monitoring For FCPA Violations

  • Ericsson, in 2019 agreed to pay more than $1 billion, including a criminal penalty, to resolve U.S. agencies' investigations into a bribery scheme that ran from 2000 to 2016 and involved the company's operations in Djibouti, China, Vietnam, Kuwait, and Indonesia, reported WSJ.

  • Also Read: Ericsson Prepared To Slash 8.5K Jobs Globally, North America To Take Maximum Hit

  • "Taking this step today means that the matter of the breaches is now resolved. This allows us to focus on executing our strategy while driving continued cultural change across the company with integrity at the center of everything we do. This resolution is a stark reminder of the historical misconduct that led to the DPA. We have learned from that and we are on an important journey to transform our culture," stated Börje Ekholm, CEO of Ericsson.

  • Price Action: ERIC shares traded higher by 3.27% at $5.69 during premarket on the last check Friday.

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This article Ericsson Brings 2019 DPA Breaches To An End, Agrees To Pay $206.7M Fine originally appeared on Benzinga.com

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