Ericsson (ERIC) will pay settlement charges of 80 million euros as it aims to follow a zero-tolerance policy for corruption and build a culture of compliance.
Telefonaktiebolaget L M Ericsson (NASDAQ: ERIC) has reached a settlement agreement with Nokia Oyj (NYSE: NOK) on a 2019 U.S. DOJ and SEC investigation into Ericsson’s violations of the U.S. Foreign Corrupt Practices Act (FCPA). The investigations were related to criminal charges of books, records, and internal controls violations of the FCPA and bribery. Ericsson will pay a penalty of $97 million (€80 million) for uncertainty, risk, and expense from the prolonged and complex litigation. The settlement will affect Ericsson’s Q2 2021 EBIT and cash flow by €80 million and €26 million, respectively. The remainder of the settlement amount will be made in similar installments in 2022 and 2023, impacting the cash flow. The settlement amount will be recorded as ‘Other Operating Expenses.’ Further details of the terms of the settlement are confidential. Price action: NOK shares traded lower by 1.42% at $4.86, while ERIC shares traded higher by 0.15% at $13.31 in the premarket session on the last check Wednesday. See more from BenzingaClick here for options trades from BenzingaEricsson, Samsung Forge Global Patent License Agreement© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
TELUS and Ericsson (NASDAQ: ERIC) have successfully conducted the first multi-vendor network slicing proof of concept in a lab environment based on 3GPP Release 16 and the Internet Engineering Task Force (IETF) Layer 3 NW Yang Model (L3NM). With the completion of this network slicing proof of concept, TELUS and Ericsson have successfully tested the maturity of standards and readiness of commercial products to meet the needs of enterprises and industry verticals.