Ericsson Says US Court Has Dismissed Shareholder Lawsuit

By Dominic Chopping

STOCKHOLM--Ericsson said Thursday that a U.S court has dismissed a claim by certain shareholders that the company misled investors over its business dealings and compliance in Iraq.

Ericsson said the court rejected in full the plaintiff's claims that the company misled investors and concluded that it didn't violate any disclosure obligation to investors.

"The motion to dismiss decision is subject to appeal from the plaintiff. Ericsson will continue to vigorously defend this matter if appealed," the company said.

The Swedish telecom equipment giant came under pressure last year after it said an internal investigation had found evidence of historical corruption in Iraq. It was recently fined around $207 million by the U.S. Justice Department for the company's failure to properly disclose the 2019 investigation that left it to determine if certain payments in the country fell into the hands of terror organizations.

The court decision comes after the company said yesterday that Nasdaq Stockholm had dismissed its review of Ericsson's disclosure obligations surrounding the Iraq probe.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

May 25, 2023 02:17 ET (06:17 GMT)

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