Erickson allocated 220 million for fine from U. S.
2023.01.12 08:52
Erickson allocated 220 million for fine from U. S.
Budrigannews.com – On Thursday, Ericsson announced that it would reserve $220 million, or 2.3 billion Swedish crowns, for an anticipated fine from the United States Justice Department due to the way the company handled an earlier settlement regarding its operations in Iraq.
BS: Ericsson ‘s share price shot up 7.7% by 1336 GMT as a result of the news.
In 2019, Ericsson agreed to a three-year review and settled bribery allegations with U.S. authorities. However, it failed to fully disclose the findings of an internal investigation into possible payments to the Islamic State militant group in Iraq, which resulted in increased regulatory scrutiny.
Mads Lindegaard Rosendal, an analyst with Danske Bank Credit Research, stated that Ericsson’s announcement indicates that a resolution is closer than the market anticipated, removing a significant amount of the investment case’s uncertainty.
He stated, “The provision is substantially below both our and S&P’s base case of approximately 10 billion SEK.”
(10.4700 Swedish crowns for $1)
