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Harry Cassin
Publisher and Editor

Andy Spalding
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Jessica Tillipman
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Richard L. Cassin
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Contributing Editor

Julie DiMauro
Contributing Editor

Thomas Fox
Contributing Editor

Marc Alain Bohn
Contributing Editor

Bill Waite
Contributing Editor

Shruti J. Shah
Contributing Editor

Russell A. Stamets
Contributing Editor

Richard Bistrong
Contributing Editor

Eric Carlson
Contributing Editor

Bill Steinman
Contributing Editor

Ericsson reserves $1.2 billion for FCPA settlement

Swedish telecom giant Ericsson said Wednesday it reserved around $1.2 billion to resolve an expected FCPA enforcement action by the DOJ and SEC.

The Stockholm-based LM Ericsson Telephone Company said it was cooperating with the DOJ and SEC regarding possible FCPA violations in China, Djibouti, Indonesia, Kuwait, Saudi Arabia, and Vietnam. 

Ericsson said the breaches were the result of several deficiencies, including a failure to react to red flags and inadequate internal controls which allowed employees to actively circumvent internal controls.

The settlement provision will “impact the third quarter 2019 results,” the company said Wednesday.

We have to recognize that the Company has failed in the past and I can assure you that we work hard every day to build a stronger Ericsson, where ethics and compliance are cornerstones in how we conduct business.  President and CEO Börje Ekholm said.

Ericsson first disclosed the investigation in a company statement on June 17, 2016, when it received “a voluntary request” from U.S. authorities, according to data from FCPA Tracker

In March, Russia’s biggest mobile phone company, MTSpaid $850 million in penalties to the DOJ and SEC to resolve FCPA violations. 

Last year, Sweden’s Telia paid $965 million in total penalties to resolve FCPA offenses in Uzbekistan. The penalties were paid to enforcement agencies in the United States, Sweden, and the Netherlands.

In 2016, Amsterdam-based VimpelCom reached a $795 million FCPA resolution with the DOJ and SEC. Some of the penalties went to Dutch enforcement authorities.

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Harry Cassin is the publisher and editor of the FCPA Blog.

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