SAN DIEGO & STOCKHOLM--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Telefonaktiebolaget Lm Ericsson (NasdaqGS: ERIC) ("Ericsson") have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between April 8, 2013 and July 17, 2017. Ericsson provides information and communications technology solutions for networks and media markets worldwide.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/telefonaktiebolaget-lm-ericsson
Ericsson Accused of Delaying the Recognition of Massive Expenses
According to the complaint, Ericsson overstated service revenues and improperly delayed the recognition of at least $1 billion in expenses on its long-term service projects while representing that its financial statements were prepared in accordance with International Financial Reporting Standards. After many years of reporting misleading financial information, Ericsson began to reveal the truth on April 21, 2016, when the company announced disappointing results for the first quarter ended March 31, 2016, due to weak revenues from service projects. The company continued to report poor financial results for the second and third quarters of 2016, again blaming weak revenues from service projects and higher-than-expected costs. On July 18, 2017, Ericsson revealed that it identified 42 long-term service contracts to date with total annual sales of almost $1 billion that Ericsson would exit, renegotiate, or transform. Since Ericsson's troubles became known to investors, Ericsson's American Depositary Share price has fallen over 35% to close at $6.33 per share on April 16, 2018.
Ericsson Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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