Ericsson: to book 1.2 billion dollar investigation provision
(CercleFinance.com) - Ericsson will book a provision of 12 billion Swedish kronor (about 1.
2 billion dollars) in relation to a long-running investigation by the US authorities, it said on Thursday.
The Swedish telecom equipment maker said that the provision will impact its third quarter results, covering an estimated monetary sanction of 1 billion dollars, plus other costs.
Ericsson said that it has been co-operating since 2013 with an investigation by the US Securities and Exchange Commission (SEC) and, since 2015, with an investigation by the Department of Justice (DoJ).
The investigation - covering a period ending in early 2017 - revealed breaches of the company's business ethics and violation of the US Foreign Corrupt Practices Act (FCPA) in six countries: China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam, the group said.
A resolution is still being sought, Ericsson added.
Ericsson shares, however, managed to resist in Stockholm on Thursday morning, down just 0.2%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
2 billion dollars) in relation to a long-running investigation by the US authorities, it said on Thursday.
The Swedish telecom equipment maker said that the provision will impact its third quarter results, covering an estimated monetary sanction of 1 billion dollars, plus other costs.
Ericsson said that it has been co-operating since 2013 with an investigation by the US Securities and Exchange Commission (SEC) and, since 2015, with an investigation by the Department of Justice (DoJ).
The investigation - covering a period ending in early 2017 - revealed breaches of the company's business ethics and violation of the US Foreign Corrupt Practices Act (FCPA) in six countries: China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam, the group said.
A resolution is still being sought, Ericsson added.
Ericsson shares, however, managed to resist in Stockholm on Thursday morning, down just 0.2%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.