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MONSEY, N.Y., Feb. 16, 2022 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating whether Ericsson (Nasdaq: ERIC) (“Ericsson”) has violated federal securities laws. If you suffered losses as a result of today’s drop in the price of ERIC, and have questions about your legal rights, please contact us using the following link to discuss your options at no charge:
https://wohlfruchter.com/cases/ericsson/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation? On February 15, 2022, Ericsson released a statement revealing that unusual expense claims in Iraq, dating back to 2018, had triggered a review that uncovered concerns about compliance with the company’s Code of Business Ethics.
Ericsson’s statement further disclosed that a subsequent investigation of the conduct of Ericsson employees, vendors and suppliers in Iraq during the period 2011-2019, found serious breaches of the Code of Business Ethics and other compliance rules, and identified evidence of corruption-related misconduct, including, making a monetary donation without a clear beneficiary; paying a supplier for work without a defined scope and documentation; using suppliers to make cash payments; funding inappropriate travel and expenses; and improper use of sales agents and consultants.
In addition, the investigation uncovered violations of Ericsson’s internal financial controls; conflicts of interest; non-compliance with tax laws; and obstruction of the investigation. It also identified payments to intermediaries and the use of alternate transport routes in connection with circumventing Iraqi Customs, at a time when terrorist organizations, including ISIS, controlled some transport routes. Payment schemes and cash transactions that potentially created the risk of money laundering were also identified.
A copy of Ericsson’s statement is available on our website at the link above.
On February 16, 2022, it was reported that Ericsson Chief Executive Borje Elkholm advised the Danish newspaper Dagens Industri that payments dating back to 2018 may have been made to purchase transportation routes “through areas that have been controlled by terrorist organizations, including ISIS.”
In reaction to these disclosures, the price of ERIC stock has dropped nearly 15% as of 10:45 AM Eastern on February 16, 2022.
About Wohl & Fruchter Wohl & Fruchter LLP, with offices in New York City and Monsey, has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:Wohl & Fruchter LLPJoshua E. Fruchter Toll Free 866.833.6245 alerts@wohlfruchter.comwww.wohlfruchter.com
Source: Wohl & Fruchter LLP
