Ericsson Faces SEC Probe Over 2019 Investigation Report Revealing Iraq Bribery Case

Ericsson was earlier fined by the US Department of Justice in 2019 over the settlement of another bribery case.

Ericsson Faces SEC Probe Over 2019 Investigation Report Revealing Iraq Bribery Case

Ericsson said it was fully cooperating with the SEC

Highlights
  • Investigation concerns matters described in Iraq investigation report
  • US agencies investigated the company earlier
  • The US Department of Justice fined Ericsson in 2019

Ericsson said on Thursday that the US securities regulator has opened an investigation concerning the matters described in the company's 2019 Iraq investigation report.

The Swedish telecom equipment maker said it was fully cooperating with the United States Securities and Exchange Commission (SEC) and it was too early to determine or predict the outcome of the investigation.

Ericsson disclosed in February that an internal investigation had found it may have made payments to the Islamic State militant group in Iraq - misconduct it said "started at least back in 2011."

The US Department of Justice, which fined Ericsson in 2019 over the settlement of another bribery case, is also investigating the company's handling of the investigation and is expected to fine the company.

"In these cases it is not uncommon for multiple branches of the US authorities to become involved and this is not something that we would expect to significantly change any final penalty and/or settlement," according to Mads Rosendal, an analyst at Danske Bank Credit Research.

"It could however lead to further delays now that more stakeholders will be involved."

© Thomson Reuters 2022


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