Telefonaktiebolaget LM Ericsson

Investigation
02/27/2022

Initial Lawsuit
03/03/2022

Lawsuit Progression
06/08/2022

Investigation

Continous Holding
April 27, 2017 to February 25, 2022
Proposed Claim
Securities Violation

Did Ericsson issue misleading statements about its operations in Iraq? This investigation follows the International Consortium of Investigative Journalists’ (ICIJ) release of the Ericsson Lists.

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

Ericsson Lists

02/27/2022

News Outlets

The International Consortium of Investigative Journalists (ICIJ) releases the Ericsson Lists, a series of articles about, among other information, Ericsson’s alleged dealings with ISIS in Iraq, citing a leaked internal investigation that revealed that Ericsson had reportedly made “tens of millions of dollars in suspicious payments” over nearly a decade to keep its business in the country.

The ICIJ has continued publishing series of reports on Ericsson listing key figures, secret payments, this investor lawsuit and other governmental response.

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$9.28	$10.12	$-0.84	-8.3%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 03/03/2022

An Ericsson investor filed a federal securities class action on behalf of a class consisting of all persons and entities (other than defendants) that purchased or otherwise acquired Ericsson securities between April 27, 2017, and February 25, 2022, both dates inclusive.

Filing Date
03/03/2022
Class Period
04/27/2017 to 02/25/2022
Transgression
Securities Violation
Filing Firms
Pomerantz LLP
Wohl & Fruchter LLP
Case Title
Nyy v. Telefonaktiebolaget LM Ericsson et al
Docket Number
1:22-cv-01167
Court
New York Eastern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) Ericsson overstated the extent to which it had reformed its business practices to eliminate the use of bribes to secure business in foreign countries;
(ii) Ericsson had paid bribes to the terrorist group the Islamic State in Iraq and Syria (ISIS) to gain access to certain transport routes in Iraq;
(iii) accordingly, the company’s revenues derived from its operations in Iraq were, in at least substantial part, derived from unlawful conduct and thus unsustainable; and
(iv) as a result, the company’s public statements were materially false and misleading at all relevant times.