The Law Offices of Frank R. Cruz Continues Its Investigation of Ericsson (ERIC) on Behalf of Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz continues its investigation of Telefonaktiebolaget LM Ericsson (“Ericsson” or the “Company”) (NASDAQ: ERIC) on behalf of investors concerning the Company’s possible violations of federal securities laws.

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On February 15, 2022, Ericsson disclosed results of an internal investigation that detailed suspect payments made to use alternate transport routes in connection with circumventing Iraqi Customs, at a time when militant organizations, including ISIS, controlled some routes. The Company found “violations of Ericsson’s internal financial controls; conflicts of interest; non-compliance with tax laws; and obstruction of the investigation.” Though the investigation closed in 2019, the Company reportedly “did not find it material enough to disclose the findings” but “revisited its stance after enquiries about the probe from media outlets.”

On this news, Ericsson’s stock fell $1.45, or 11.6%, to close at $11.01 per share on February 16, 2022, thereby injuring investors.

Then, on March 2, 2022, Ericsson stated that the U.S. Department of Justice (“DOJ”) had determined that the Company breached the deferred prosecution agreement (“DPA”), which had been entered in December 2019. Specifically, Ericsson’s disclosure “prior to the DPA about its internal investigation into conduct in Iraq in the period 2011 until 2019 was insufficient” and Ericsson “fail[ed] to make subsequent disclosure related to the investigation post-DPA.”

On this news, Ericsson’s stock declined as much as 14% during intraday trading on March 2, 2022, thereby injuring investors further.

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If you purchased Ericsson securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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