Swedish telecom giant Ericsson sets $1.23 billion in reserves to cover fines relating to foreign bribes in China, Greece, Vietnam and more

 

Ericsson, the Swedish multinational networking and telecommunications company has reserved $1.23 billion to cover fines associated with foreign bribes made by the company in China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam, based on an investigation. Ericson has a 35% share in the 2-5G mobile market network and is the major competitor to Huaweri, the Chinese telecom company. The $1.23 billion reserve provision covers $1 billion in estimated combined penalties from forthcoming settlements with the Justice Department and SEC. The remainder accounts for costs related to other investigation. Ericsson Chief Legal Officer Xavier Dedullen said the company had so far disciplined 65 employees in relation to the FCPA violations, 49 of whom were no longer with the company.  Ericsson’s settlements could include the imposition of an independent monitor to oversee the company’s compliance reforms.

If you are aware of any foreign bribes by companies traded on the US stock exchanges, you may be able to become a whistleblower under the False Claims Act (FCA) and recover up to 30% of what the Government recovers in any investigation of such bribes. US laws prevent making bribes to foreign officials or their families in order to get business in other countries. Jeffrey Newman represents whistleblowers. His email is  Jeffrey.Newman1@gmail.com