Ericsson Makes $1.2 Bln Provision To Settle US Corruption Probes

(RTTNews) - Swedish telecom equipment maker Ericsson (ERIC) said that it has made a 12 billion Swedish kronor or $1.23 billion provision related to resolving the U.S. investigations to cover an estimated monetary sanction of $1.0 billion, plus other related costs. The provision will impact the third quarter 2019 results. The process to find a resolution is still ongoing.

Ericsson said it has been co-operating voluntarily with investigations by the United States Securities and Exchange Commission and with the United States Department of Justice regarding the Company's compliance with the U.S. Foreign Corrupt Practices Act or FCPA.

The SEC started its investigation into Ericsson in 2013, and the Justice Department became involved in 2015.

The investigation covers a period ending the first-quarter of 2017 and revealed breaches of the Company's Code of Business Ethics and the FCPA in six countries: China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam.