- Settlement with Nokia of EUR 80 m (SEK 0.8 b equivalent) related to 2019 resolution with the U.S. authorities
- Impact of EUR 80 m on EBIT and EUR 26 m on cashflow in Q2 2021
STOCKHOLM, May 12, 2021 /PRNewswire/ -- Ericsson (NASDAQ: ERIC) has reached an agreement with Nokia for settling a damages claim against Ericsson. The settlement relates to events that were the subject of a 2019 resolution with the U.S. Department of Justice (DOJ) and U.S. Securities and Exchange Commission (SEC) of investigations into Ericsson's violations of the U.S. Foreign Corrupt Practices Act (FCPA).
As communicated in 2019, the resolution with DOJ 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 these six countries.
The agreement with Nokia contemplates the payment by Ericsson of a total settlement amount of EUR 80 m (SEK 0.8 b equivalent). The amount reflects uncertainty, risk, expense, and potential distraction from business focus associated with a potentially lengthy and complex litigation. The settlement will have an impact of EUR 80 m on EBIT and EUR 26 m on cashflow in Q2 2021. The remainder of the settlement amount will be made in similar installments in 2022 and 2023 respectively, impacting cash-flow. The settlement amount will be recorded as Other Operating Expenses under Segment Emerging Business and Other. Further details of the terms of the settlement are confidential.
Ericsson has a zero-tolerance policy for corruption and has in recent years worked hard to strengthen its Ethics and Compliance program and to build a culture of compliance.
NOTES TO EDITORS:
FOLLOW US:
Subscribe to Ericsson press releases here.
Subscribe to the Ericsson Blog here.
https://www.twitter.com/ericsson
https://www.facebook.com/ericsson
https://www.linkedin.com/company/ericsson
About Ericsson
Ericsson enables communications service providers to capture the full value of connectivity. The company's portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's investments in innovation have delivered the benefits of telephony and mobile broadband to billions of people around the world. The Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
Forward-looking statements
This release includes forward-looking statements, including statements reflecting management's current views relating to the growth of the market, future market conditions, future events, financial condition, and expected operational and financial performance, including, in particular the following:
– Our goals, strategies, planning assumptions and operational or financial performance expectations
– Industry trends, future characteristics and development of the markets in which we operate
– Our future liquidity, capital resources, capital expenditures, cost savings and profitability
– The expected demand for our existing and new products and services as well as plans to launch new products and services including research and development expenditures
– The ability to deliver on future plans and to realize potential for future growth
– The expected operational or financial performance of strategic cooperation activities and joint ventures
– The time until acquired entities and businesses will be integrated and accretive to income
– Technology and industry trends including the regulatory and standardization environment in which we operate, competition and our customer structure.
The words "believe," "expect," "foresee," "anticipate," "assume," "view," "intend," "likely," "projects," "may," "could," "plan," "estimate," "forecast," "will," "should," "would," "predict," "aim," "ambition," "seek," "potential," "target," "might," "continue," or, in each case, their negative or variations, and similar words or expressions are used to identify forward-looking statements. Any statement that refers to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
We caution investors that these statements are subject to risks and uncertainties many of which are difficult to predict and generally beyond our control that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.
Important factors that could affect whether and to what extent any of our forward-looking statements materialize include, but are not limited to, the factors described in the section "Risk Factors" in the latest interim report, and in "Risk Factors" in the Annual Report 2020.
These forward-looking statements also represent our estimates and assumptions only as of the date that they were made. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this release, to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events, whether as a result of new information, future events or otherwise, except as required by applicable law or stock exchange regulations.
MORE INFORMATION AT:
Ericsson Newsroom
media.relations@ericsson.com
(+46 10 719 69 92)
investor.relations@ericsson.com
(+46 10 719 00 00)
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
Ericsson announces settlement with impact in second quarter 2021 |
