Ericsson shares rise amid agreement with DoJ
2023.03.03 11:36
Ericsson shares rise amid agreement with DoJ
By Kristina Sobol
Budrigannews.com – Ericsson shares (BS:) (NASDAQ:) after the company announced that it had reached an agreement with the U.S. Department of Justice (DoJ) regarding non-criminal breaches of the 2019 Deferred Prosecution Agreement (DPA), they are trading nearly 4% higher in pre-open trading.
The Swedish telecom monster will concede and suffer a criminal consequence of more than $206 million, which will finish the DPA. Ericsson bribed foreign officials by employing consultants from outside the company.
“The matter of the breaches is now resolved by taking this step today. Börje Ekholm, CEO of Ericsson, commented, “This enables us to focus on executing our strategy while driving continued cultural change across the company with integrity at the center of everything we do.”
The Department of Justice and the Securities and Exchange Commission (SEC) of the United States are still looking into Ericsson for its activities in Iraq.
The agreement received positive feedback from Citi analysts.
“While it is positive that the DPA has been concluded, the Iraq investigation remains, in our opinion, an overhang on shares. The analysts wrote, “The potential for additional penalties related to its Iraq conduct and margin weakness offset our rating of Neutral.”
