News

Advanced Search

TELEFONAKTIEBOLAGET LM ERICSSON UPDATE: Berger Montague Investigates Securities Fraud Allegations Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC); Lead Plaintiff Deadline is May 2, 2022

DATE: March 23, 2022

PHILADELPHIA, March 23, 2022 – Berger Montague is investigating securities fraud allegations on behalf of investors who purchased the securities of Telefonaktiebolaget LM Ericsson (“Ericsson” or the “Company”) (NASDAQ: ERIC) between April 27, 2017 and February 25, 2022 (the “Class Period”).

If you purchased Ericsson securities during the Class Period, would like to discuss Berger Montague’s investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at [email protected] or (215) 875-3015, or Michael Dell’Angelo at [email protected] or (215) 875-3080 or visit: https://investigations.bergermontague.com/telefonaktiebolaget-lm-ericsson/

Whistleblowers: Anyone with non-public information regarding Ericsson is encouraged to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.

The Lawsuit: According to a recently filed lawsuit, Ericsson and members of its senior management deceived investors about the Company’s business in Iraq and its compliance with a December 2019 deferred prosecution agreement with the DOJ concerning alleged Foreign Corrupt Practices Act violations.

Investors began to learn the truth through a series of disclosures beginning on February 15, 2022, when Ericsson revealed that unusual expenses in Iraq dating back to 2018 had triggered an internal review. The following day, February 16, 2022, Ericsson’s CEO reportedly told a Swedish news outlet that payments dating back to 2018 may have been made to purchase transportation routes through areas controlled by ISIS.

Finally, on February 27, 2022, the International Consortium of Investigative Journalists published an expose, based on a 79-page leaked Ericsson internal investigation report, which revealed that: (1) Ericsson sought permission from ISIS to work in an ISIS-controlled city and paid to smuggle equipment into ISIS areas; (2) Ericsson “made tens of millions of dollars in suspicious payments over nearly a decade to sustain its business in Iraq”; and, (3) there was within Ericsson “a pattern of bribery and corruption so widespread, and company oversight so weak, that millions of dollars in payments couldn’t be accounted for.” These revelations caused the price of Ericsson securities, including American Depositary Shares, to experience significant declines in value.

Request A Free Consultation