Sweden: Ericsson to Pay Nokia $97.2 Million to Settle Damages Claim

Ericsson AB said it would pay Nokia Corp. €80 million, equivalent to $97.2 million, to settle a damages claim relating to previously announced allegations that it violated the U.S. Foreign Corrupt Practices Act.

In 2019, Ericsson settled probes by the U.S. Securities and Exchange Commission and Justice Department into allegations of corruption in China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam.

The resolution with the Justice Department related to criminal charges of books and records and internal controls violations of the FCPA in five countries, including in Djibouti, and a guilty plea to one instance of bribery in Djibouti.

The resolution with the SEC related to allegations of violations of the books and records and internal controls provision of the FCPA in six countries and of the bribery provision of the FCPA in three of those six countries.

Ericsson said the settlement amount announced Wednesday reflects “uncertainty, risk, expense, and potential distraction from business focus associated with a potentially lengthy and complex litigation.”

A Nokia spokesman said Ericsson’s statement about the settlement was accurate. “We have no further comment,” he said.

The settlement will hit Ericsson’s second-quarter earnings before interest and tax by €80 million and cash flow by €26 million, Ericsson said.

Further details of the terms of the settlement are confidential, Ericsson said.

The article has been summarised and the original full article can be found at wsj.com

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