Long-running US investigations into breaches of corruption rules by Ericsson were rumoured to be close to a conclusion, as the company reiterated its belief the SEK12 billion ($1.26 billion) set aside to cover fines and related costs would be sufficient.
Bloomberg reported decisions on the size of the fine and any other settlement details could be concluded in the next two weeks.
Although only sparse details of investigations have been disclosed, they relate to breaches of the US Foreign Corrupt Practices Act and are being headed by the Department of Justice and Securities and Exchange Commission.
Earlier this year Ericsson confirmed allegations cover its activities in China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam prior to the end of Q1 2017.
Ericsson made provision for the potential penalties in its Q3 accounts.
In a statement following the Bloomberg article, Ericsson said: “In light of recent media coverage about the resolution of the investigations, the company will not comment other than to confirm that the provision of $1.2 billion is still its current estimate of the amounts needed to cover the monetary sanctions, plus other related costs.”Subscribe to our daily newsletter Back