Ericsson has been cleared of any wrongdoing by a U.S. court after certain shareholders accused the company of misleading investors over its business dealings and compliance in Iraq. The court rejected the plaintiff’s claims in full and concluded that Ericsson did not violate any disclosure obligations to investors.
The Swedish telecom giant had come under pressure last year after it revealed an internal investigation had found evidence of historical corruption in Iraq. It was subsequently fined $207 million by the U.S. Justice Department for failing to properly disclose the 2019 investigation.
Ericsson said yesterday that Nasdaq Stockholm had also dismissed its review of the company’s disclosure obligations surrounding the Iraq probe. The company will continue to defend the matter if appealed.
The court decision is a welcome relief for Ericsson, which has been under scrutiny for its business dealings in Iraq. It is a reminder to companies to ensure they are transparent and compliant with all disclosure obligations.