Stock Watchdog Investigates Ericsson for Possible IS Bribery

The US stock watchdog SEC has opened an investigation into Ericsson over suspicions that the company paid bribes in Iraq and possibly financed ISIS.

 

News of the possible bribery became known at the beginning of this year and dates from an internal report from 2019. It appears that between 2011 and 2018 Ericsson may have paid money to unknown recipients and suppliers without a clear description. It is alleged that employees of the company paid people locally for access to routes through IS territory. It is therefore assumed that Ericsson may have indirectly financed IS.

That led to a class action in March against the company, the CFO and CEO and an investigation by the US Department of Justice, which previously fined Ericsson in another bribery case. Now the SEC is also starting an investigation. The company told Reuters that it is cooperating, but will not comment further.

Ericsson is a Swedish company, but it is listed on the American Nasdaq. However, the fact that there will be a second investigation does not mean that the company is looking at a double fine. Reuter’s nuances are that Justice deals with the criminal aspect of the case and the SEC deals with the civil part. But in the event of a fine or a settlement, that amount is shared between the two prosecutors.

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