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Ericsson Has Dismissed 50 Employees Following US Corruption Probe

Ericsson Has Dismissed 50 Employees Following US Corruption Probe

By Reuters | Updated: 18 October 2018 19:01 IST

Highlights

Ericsson previously said it received questions from authorities in 2013
Cooperating with US SEC and DoJ: Ericsson
Findings of corruption can result in hefty fines for the company

Mobile telecom gear maker Ericsson said on Thursday that it has dismissed 50 people over a US corruption probe it warned could lead to a financial penalty.

The Swedish company has previously said that it initially received questions from US authorities in March 2013 and that it has been cooperating with the US Securities and Exchange Commission and the US Department of Justice.

"I'm trying to say that we have taken quite a lot of actions and done quite a lot of activities," Ericsson Chief Executive Borje Ekholm told a press conference, after the group reported stronger-than-expected third-quarter results.

The 50 employees have left the company since Ericsson began its own investigation in 2013, a company spokesman said, but declined to be more precise. Several regions were affected, but the spokesperson declined to give details.

Ericsson has not commented on previous media reports that US authorities were investigating its business practices in Romania and in China.

"We believe that the resolution of these matters will likely result in monetary and other measures, the magnitude of which cannot be estimated currently but may be material," Ekholm said in a statement.

Findings of corruption by US authorities can result in hefty fines for companies under the Foreign Corrupt Practices Act.

© Thomson Reuters 2018

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