logo
Plus   Neg
Share
Email

Ericsson Agrees To Pay More Than $1 Bln To Settle U.S. Corruption Probe

Sweden's telecoms giant Ericsson agreed to pay penalties of more than $1 billion to settle the U.S. government's investigation into violations of the Foreign Corrupt Practices Act arising out of the company's scheme to make and improperly record tens of millions of dollars in improper payments around the world.

Ericsson Egypt pleaded guilty to conspiracy to violate the anti-bribery provisions of the FCPA. Ericsson must retain an independent compliance monitor for at least three years.

The settlement included a criminal penalty of over $520 million and about $540 million to be paid to the U.S. Securities and Exchange Commission in a related matter.

The SEC's complaint alleged that from 2011 through 2017, Ericsson subsidiaries obtained business valued at about $427 million by using third parties to bribe officials in Saudi Arabia, China, and Djibouti.

The complaint also alleged that Ericsson's subsidiaries further violated the U.S. corruption Act in Vietnam, Indonesia and Kuwait, by maintaining slush funds, using code names, and creating sham transactions and invoices.

In September, Ericsson said it had put aside $1.2 billion to cover possible penalties stemming from the U.S. investigation.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
CJ Foods, Inc., a division of CJ America, Inc., recalled Annie Chun's Japanese-Style Teriyaki Noodle Bowls due to undeclared peanuts, the U.S. Food and Drug Administration said. The La Palma, California-based company initiated the recall after discovering that some bowls that were packaged in outer sleeves indicating Teriyaki Noodle Bowls contain Pad Thai noodle, which contains peanuts. Struggling home furnishings retailer Pier 1 Imports, Inc. said it filed for Chapter 11 bankruptcy protection as it is initiating a sale process. The company is in discussions with multiple potential buyers. In a statement, the company said it has also entered into a Plan Support Agreement or PSA with a majority of its term loan lenders. The deadline to submit bids will be on or around March 23. Apple Inc. (AAPL) said it doesn't expect to meet its revenue guidance for the second quarter due to lower smartphone demand, and temporary work slowdowns related to coronavirus outbreak in China.
Follow RTT
>