Ericsson Slumps After DOJ Faults Disclosure Over Iraq Probe
- Company currently co-operating with Department of Justice
- Several employees have exited the company after investigation
Plants surround a logo on the wall of the Ericsson AB stand at the MWC Barcelona in Barcelona, Spain, on March 1.
Photographer: Angel Garcia/BloombergThis article is for subscribers only.
Ericsson, mired in a scandal over potential payments to the terrorist organization ISIS, slumped after the U.S. Department of Justice said it failed to make adequate disclosures about its operations in Iraq before entering a deferred prosecution agreement in 2019.
The DOJ also determined that Ericsson also breached the agreement by “failing to make subsequent disclosure” after signing it, according to a statement by the company on Wednesday. Ericsson shares fell more than 12% at the start of trading in Stockholm.