Ericsson to pay $206 mln for violating deal with US prosecutors

The US Department of Justice said that the Swedish company Ericsson agreed to pay $206 million and pleaded guilty to violating a 2019 agreement with US prosecutors by not properly disclosing information about its activities in Iraq, China and Djibouti.

According to Reuters, the plea agreement comes after a scandal over possible payments from the telecommunications company to the Islamic State group through its activities in Iraq.

The Justice Department says the telecom company has not fully disclosed its activities after concluding a deferred prosecution agreement in 2019 to settle a years-long corruption investigation in China, Vietnam and Djibouti.

Under the deferred prosecution agreement, the Department of Justice agreed to defer prosecution of Ericsson for three years if it paid more than $1 billion in fines and other fees, implemented “strict internal controls,” complied with US laws, and cooperated fully in any ongoing investigations.

“Ericsson violated the deferred prosecution agreement by breaching the terms of the agreement relating to cooperation and disclosure,” the Department of Justice said in a statement on Thursday.

It added that the company would be obligated to spend a period of probation until June 2024, and agreed to a one-year extension to work as an independent compliance monitor.

The Justice Department also said Thursday, referring to the 2019 settlement, that Ericsson previously paid a total criminal fine of more than $520 million and agreed to commission an independent compliance monitor for three years.

Ericsson said in a statement that the plea agreement will bring to an end the deferred prosecution agreement for 2019.

“This decision is a stark reminder of the historic misconduct that led to the deferred prosecution agreement,” said Bourrier Echolem, the company’s chief executive. We have learned from it and are embarking on an important journey to transform our culture.”