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ericson (NASDAQ:ERIC) will plead guilty to previously deferred charges in a Justice Department bribery investigation and pay a fine of just under $207 million, settling a 2019 deferred prosecution agreement.
Ericsson Shares (ERIC) was up to 2.4% after hours Thursday.
The company admits to breaching that 2019 agreement with prosecutors after failing to properly disclose information about its activities in Djibouti, China, Vietnam, Indonesia and Kuwait.
Ericsson pleads guilty to “engaging in a long-running scheme to violate the Foreign Corrupt Practices Act by paying bribes, falsifying books and records,” the Justice Department said, and failing to implement reasonable internal accounting controls in several countries.
Rather than honor a commitment made to the deferred prosecution agreement, “Ericsson repeatedly failed to fully cooperate and undisclose evidence and allegations of misconduct in violation of the agreement,” said Assistant Attorney General Kenneth A. Polite Jr. “As a result For these broken promises, Ericsson must plead guilty to two offenses and pay an additional fine.”
Ericsson says it is not adjusting the long-term financial targets it has been given as it does not expect material deviations there.
“This resolution is a stark reminder of the historic misconduct that led to the DPA,” CEO Börje Ekholm said. “We’ve learned from that and we’re on an important journey to transform our culture.”