- Ericsson (NASDAQ:ERIC) is 3.2% lower today in Nasdaq trading after the Justice Dept. accused it of breaching a settlement over bribery.
- The company had reached a $1.06 billion settlement in 2019 addressing allegations of bribery in five countries - Djibouti, China, Vietnam, Kuwait and Indonesia.
- But now it's heard from DOJ, which says the company has failed to provide related documents and information, in breach of that deferred prosecution settlement.
- Ericsson says it will have the opportunity to respond and that it will continue to cooperate with the Justice Dept.
- The news comes as senior officials have signaled that breaching such settlements could come with more severe punishment than was originally agreed to. Earlier this month, DOJ's John Carlin said “We need to make sure that those who get the benefit of such an arrangement comply with their responsibility. If not, you should expect to see serious repercussions.”
- The stock also fell yesterday (but recovered later) after its earnings missed revenue expectations and the company warned that some sudden supply-chain constraints would pressure sales.
Ericsson dips 3% as DOJ alleges it breached bribery settlement
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