Ericsson reserves $1.2 billion for FCPA settlement

By AML FCPA, AML

Ericsson reserves $1.2 billion for FCPA settlement

Swedish telecom giant Ericsson

said Wednesday it reserved around $1.2 billion to resolve an expected FCPA enforcement action by the DOJ and SEC.

Stockholm-based LM Ericsson Telephone

said it was cooperating with the DOJ and SEC regarding possible FCPA violations in China, Djibouti, Indonesia, Kuwait, Saudi Arabia, and Vietnam.

Ericsson

said the breaches were the result of several deficiencies, including a failure to react to red flags and inadequate internal controls which allowed employees to actively circumvent internal controls.

The settlement provision

will “impact the third quarter 2019 results,” the company said Wednesday.

“We have to recognize that the Company has failed in the past and I can assure you that we work hard every day to build a stronger Ericsson, where ethics and compliance are cornerstones in how we conduct business. ” President and CEO Börje Ekholm said.

Ericsson first disclosed the investigation in a company statement on June 17, 2016, when it received “a voluntary request” from U.S. authorities, according to data from FCPA Tracker.

The FCPA Blog

https://www.fcpablog.com/blog/2019/9/26/ericsson-reserves-12-billion-for-fcpa-settlement.html

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