Sony Pixel Power calrec Sony

Ericsson reaches resolution on U.S. FCPA investigations

08/12/2019

Ericsson (NASDAQ: ERIC) today announced the resolution of the previously disclosed investigations by the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) regarding the Company's compliance with the U.S. Foreign Corrupt Practices Act (FCPA). While the DOJ and SEC conduct separate investigations, the same facts have been shared by Ericsson with both authorities.

The resolution relates to historical FCPA breaches ending Q1 2017. While the Company had a compliance program and a supporting control framework, they were not adequately implemented. Specifically, certain employees in some markets, some of whom were executives in those markets, acted in bad faith and knowingly failed to implement sufficient controls. They were able to enter into transactions for illegitimate purposes and, together with people under their influence, used sophisticated schemes in order to hide their wrongdoing.

The resolution marks the end of the FCPA-related investigations into Ericsson and its subsidiaries undertaken by the DOJ and the SEC.

The DOJ proceeding is a criminal enforcement action and the SEC proceeding is a civil enforcement action. The agencies resolve their investigation independently of one another using their own discretion and applying different standards of proof. As a result, the DOJ and SEC have come to different conclusions based on the same facts.

DOJ resolution

Ericsson has agreed to enter into a Deferred Prosecution Agreement (DPA) with the DOJ to resolve criminal charges relating to violation of bribery provision of the FCPA in Djibouti. The DPA also resolves criminal charges relating to violations of the accounting provisions of the FCPA in China, Djibouti, Indonesia, Kuwait, and Vietnam. In connection with the matter in Djibouti, Ericssons Egyptian subsidiary pled guilty to bribery today. As part of the resolution Ericsson will pay a fine of USD 520,650,432.

SEC resolution

Ericsson has agreed with the SEC to the entry of a judgment to resolve claims related to allegations of violations of the accounting provisions of the FCPA in China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam and of the bribery provisions of the FCPA in Djibouti, China and Saudi Arabia. As part of the resolution, Ericsson will pay financial sanction of USD 458,380,000, plus pre-judgement interest of USD 81,540,000.

In parallel to the investigations, the Company has since 2016, together with external expert advisors, conducted a comprehensive review of the Company's anti-corruption program. Based on this review, Ericsson has been taking significant steps to improve its Ethics and Compliance program.

Pursuant to the resolutions, Ericsson has agreed to continue enhancing its internal controls and its compliance program.

B rje Ekholm, President and CEO, says: I am upset by these past failings. Reaching a resolution with the US authorities allows us to close this legacy chapter. We can now move forward and build a stronger company.

The settlement with the SEC and DOJ shows that we have not always met our standards in doing business the right way. This episode shows the importance of fact-based decision making and a culture that supports speaking up and confronting issues. We have worked tirelessly to implement a robust compliance program. This work will never stop.

Ronnie Leten, Chair of the Board of Directors, says: Ultimately we can only be successful if we have an entrenched ethics and compliance culture. I am confident that with the significant steps already undertaken we are better equipped to execute on our strategy without compromising on our values.

DETAILS OF IMPROVED ETHICS AND COMPLIANCE PROGRAM

Improvements to Ericsson's Ethics and Compliance program include:

Additional resources for the Compliance and Investigations functions.

Reorganizing the allegation management process to ensure a centralized, professional intake of allegations, conduct of investigations and remediation.

Refining the risk assessment process to consist of a tiered approach and systematic risk mitigation methodology.

Enhancing the due diligence process of third-parties, including the overall monitoring of third-party engagements.

Introducing more sophisticated analytic tools to better identify and prevent high-risk transactions and engagements.

Enhancing the ethics and compliance vetting process for senior leaders.

Refreshing compliance training modules for employees, including workshops and face-to-face training for employees in exposed roles.

Enhancing the internal anti-corruption and compliance related awareness campaigns (including the Company's zero tolerance for corruption).

INVITATION TO MEDIA AND ANALYST CALL

The company will hold a conference call for journalists, financial analysts and investors. B rje Ekholm, President and CEO, Carl Mellander, Chief Financial Officer, and Xavier Dedullen, Chief Legal Officer will make brief comments and take questions.

The conference call will begin December 7, at 9:30 AM CET (8:30 AM GMT in London and 3.30 AM EST in New York).

To join the conference call, please phone one of the following numbers:

Sweden: 46 (0)8 566 42651 (Toll-free Sweden: 0200 883 685)

International/UK: 44 (0)333 300 0804 (Toll-free International/UK: 0800 358 9473)

US: 1 631 913 1422 (Toll-free US: 1 855 857 0686)

PIN code: 80473445 #

A live audio webcast of the conference call will be available at www.ericsson.com/investors and www.ericsson.com/newsroom

Replay:

A replay of the conference call will be available from about one hour after the conference call has ended until December 14, 2019.

Sweden replay number: 46 (0) 8 519 993 85

International/UK replay number: 44 (0) 333 300 0819

US replay number: 1 (866) 931 1566

PIN code replay: 301305281#

An on-demand webcast will be available at www.ericsson.com/investors an
LINK: https://wcm-com.ericsson.net/en/press-releases/2019/12/ericsson-reache...
See more stories from ericsson

Europe Stories

03/06/2024

Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives

Dalet, a leading technology and service provider for media-rich organizations, a...

28/04/2024

Mediahaus delivers the first SRT live-streaming sports production over 5G with URSA Broadcast G2

Mediahaus delivers the first SRT live-streaming sports production over 5G with U...

29/03/2024

Thales Announces Partnership with Saporo in Belgium to Empower Organizations with Enhanced Cybersecurity Resilience

Facebook Twitter LinkedIn This collaboration brings together Thales' e...

28/03/2024

No votes for all

Out of an estimated 20,000 journalists in Pakistan, less than one thousand are women according to a recent Gender Disparity Report published by the Internationa...

28/03/2024

The 4K cameras giving audiences an astronaut's view of Earth

TVBEurope meets Charles Black, founder and CEO of Sen, which has sent a payload of 4K cameras to the ISS to livestream images of Earth to audiences around the w...

28/03/2024

VEON Pays Back Outstanding Balance and Cancels its Revolving Credit Facility

28 Mar 2024 VEON Pays Back Outstanding Balance and Cancels its Revolving Credit Facility Amsterdam, 28 March 2024, 09.30 CET - VEON Ltd. (Nasdaq: VEON, Euronex...

28/03/2024

Rohde & Schwarz first to show measurements on novel Bluetooth Channel Sounding signals for positioning accuracy

Rohde & Schwarz first to show measurements on novel Bluetooth Channel Sounding ...

28/03/2024

Julia Rodgers Joins Riedel Communications as Southeast Regional Sales Manager, Bringing Decades of Industry Expertise

Wuppertal March 28, 2024 Julia Rodgers Joins Riedel Communications as Southeas...

28/03/2024

Thales speeds up its development of AI for defence

Facebook Twitter LinkedIn Thales, Europe's leading high-tech company in the civil and defence fields, has announced the creation of cortAIx, which bri...

27/03/2024

UKTV sets up second series of Dream Car Fixers for Yesterday and UKTV Play

Wednesday 27 March 2024 - UKTV has commissioned a second series of Dream Car Fixers (6x60) for leading factual channel Yesterday and free streaming service UKTV...

27/03/2024

Paving the Way' for Spotify's NextGen Scholarship Recipients

Spotify is committed to amplifying the voices of underrepresented groups, and that starts with empowering the creators who will shape our industry's future....

27/03/2024

I knew there were cameras, lighting, some buttons and microphones involved': How Crew Room Academy is inspiring the next generation

TVBEurope hears from some of the students who took part in Crew Room Academys Sc...

27/03/2024

Adobe reveals Gen AI solutions for content supply chain

Elsewhere, Adobe revealed a new feature in Adobe Firefly, which uses the companys generative AI to easily apply the structure of an existing image to newly gene...

27/03/2024

Best of Show Awards for 2024 NAB Show entries close soon

The awards, from industry-leading brands of Future plc, provide a great opportunity for companies to stand out at one the most attended shows in the industry B...

27/03/2024

Meet the director of IT and operations

By TVBEurope Staff Published: March 27, 2024 Updated: March 28, 2024 CueScript's director of IT and operations, Meghan Tyler, tells TVBEurope about h...

27/03/2024

2023 Annual Report Publication

Ad hoc announcement pursuant to Art. 53 LR Cheseaux-sur-Lausanne, Switzerland, and Phoenix (AZ), USA, March 27 2024 - The Kudelski Group has published its 2023...

27/03/2024

Publication of Annual Report 2023

Annual Report 2023...

27/03/2024

ALOFT AeroArchitects equips private Boeing Business Jet aircraft with Eutelsat OneWeb's LEO satellite connectivity service

Photo credit: ALOFT AeroArchitects Press release - 27 March 2024 12:27 ALOFT...

27/03/2024

Dalet Showcases AI-Enabled Production, Automation and Monetization at NAB 2024

Dalet, a leading technology and service provider for media-rich organizations, today announced its 2024 NAB showcase (booth #W1713). Attendees can experience fi...

27/03/2024

Cinegy Multiviewer 24.2 - Scales of Efficiency

SL6031, NAB Show, Las Vegas, 14-17 April 2024: Cinegy, the premier provider of software defined television technology for digital video capture, processing, ass...

27/03/2024

PERCEVAL: Thales and partners reshape the future of airline pilot training

Facebook Twitter LinkedIn Thales has formed a consortium with ENAC, lENS Paris-Saclay, Simaero, AviaSim and Corsair to develop a tooled methodology for ev...

27/03/2024

Advocacy in Action: Creating a future where public service media thrive

Advocacy in Action: Creating a future where public service media thrive...

27/03/2024

EBU calls on MEP candidates to Do the next right thing for media and democracy!'

EBU calls on MEP candidates to Do the next right thing for media and democracy!...

27/03/2024

The media industry gave away the keys to the kingdom once - that shouldn't happen again

The media industry gave away the keys to the kingdom once - that shouldn't h...

26/03/2024

Sube la temperatura con las canciones del verano 2024 en Argentina y Brasil

De diciembre a marzo, cuando los ciudadanos del hemisferio sur disfrutan del verano, la m sica se convierte en una poderosa representaci n de las culturas y cos...

26/03/2024

Aumente o Som com as Msicas do Vero de 2024 da Argentina e do Brasil

De dezembro a mar o, medida que as pessoas em todo o Hemisf rio Sul aproveitam o ver o, a m sica surge frequentemente como uma representa o poderosa das cult...

26/03/2024

Turn Up the Heat With Argentina's and Brazil's 2024 Songs of Summer

From December to March, as people across the Southern Hemisphere soak up the summer, music often emerges as a powerful representation of a region's cultures...

26/03/2024

A Collaboration With Panavision: Pedro Luque, SCU

Cinematographer Pedro Luque, SCU's credits include the features Body Cam, Antebellum and director J.A. Bayona's Best International Feature Oscar-nominat...

26/03/2024

China's Leading Mobile Operators First To Commercially Launch New Fraud Reducing Password Service, After Receiving GSMA Open Gateway Certification

GSMA welcomes CITIC Telecom, Huawei and ZTE as Channel Partners 26 March 2024, Beijing: China's three leading mobile operators - China Mobile, China Telec...

26/03/2024

China's 5G market is set to add almost $260 billion to the Chinese economy in 2030 with connections set to top 1 billion this year

At the Post-MWC Sharing Event in Beijing, leaders from the GSMA contextualised t...

26/03/2024

Crown Works Studios moves forward following council approval

The studios are expected to be one of the largest in Europe, with 20 premium sound stages suitable for major feature film and high-end TV (HETV) productions By...

26/03/2024

The Slovak democracy must not be dismantled in silence

The Slovak democracy must not be dismantled in silence...

26/03/2024

VEON announces sale of stake in Beeline Kyrgyzstan, increasing the focus on its large markets

26 Mar 2024 VEON announces sale of stake in Beeline Kyrgyzstan, increasing the ...

26/03/2024

embedded world 2024: Rohde & Schwarz presents its cutting-edge test solutions for embedded systems

embedded world 2024: Rohde & Schwarz presents its cutting-edge test solutions fo...

26/03/2024

Riedel and TSL Provide Cost-Effective, High-Quality Video Routing and Control for Leading Financial Corporation

Wuppertal March 26, 2024 Riedel and TSL Provide Cost-Effective, High-Quality V...

26/03/2024

IBM Announces EMEA Geography Winners of the 2024 IBM Partner Plus Awards

London, UK, March 26, 2024 Today, IBM (NYSE: IBM) announced the EMEA geography winners of the 2024 IBM Partner Plus Awards, which celebrate IBM partners who a...

26/03/2024

Eutelsat OneWeb services activated for enterprise and maritime in Australia and New Zealand through Sat One partnership

Photo credit: GETTY IMAGES Press release - 26 March 2024 11:29 Eutelsat OneW...

26/03/2024

2024-03-26

CUPERTINO, CALIFORNIA Apple today announced it will host its annual Worldwide Developers Conference (WWDC) online from June 10 through 14, 2024. Developers and ...

25/03/2024

Spotify Tests Video-Based Learning Courses in the UK

Today we're launching a test for video-based courses on Spotify in the U.K. We've partnered with educational tech companies including BBC Maestro, PLAYv...

25/03/2024

NEP Australia expands IP and remote production with Calrec Argo

NEP Australia expands its IP and remote production capabilities with first install of Calrec Argo consoles NEP Australia, a division of NEP Group and a prominen...

25/03/2024

NAB 2024 Preview | Why attend NAB 24?

NAB 2024 Preview | April 14 -17 | Booth C6307 | Las Vegas Convention Center We're looking forward to meeting up with customers and partners at the 2024 NAB ...

25/03/2024

Blackbird adds indexing and AI auto sequencing to video editing platform

Twelve Labs AI will enable editors to locate specific storytelling moments within their video content using natural language, said the companies By Jenny Pries...

25/03/2024

Meet the director of strategic marketing

By TVBEurope Staff Published: March 25, 2024 Updated: March 26, 2024 Bruno Fran on, director of strategic marketing at Backlight, talks to TVBEurope abou...

25/03/2024

With the EMFA, the EU has a new toolbox to prevent governments from taking over the media

With the EMFA, the EU has a new toolbox to prevent governments from taking over ...

22/03/2024

SGL Carbon achieves annual targets for 2023 and invests more in growth markets

In fiscal year 2023, SGL Carbon achieved the sales and earnings targets set at the beginning of the year despite the drop in demand from the important wind mark...

22/03/2024

Grass Valley secures $220 million in strategic refinancing

The company said it intends to accelerate innovation across its entire portfolio, most notably in the AMPP ecosystem following the refinancing By Jenny Priestl...

22/03/2024

RT kicks off Guinness Women's Six Nations coverage with France v Ireland

Watch all the games live across RT and Virgin Media Television from Saturday 23rd March All Ireland games live on RT Radio The Guinness Women's Six Nat...