Ericsson sets aside $220m for US DOJ

Ericsson sets aside $220m for US DOJ

Ericsson announced that it would put aside SEK2.3 billion (US$220m) as part of a potential resolution with the US Department of Justice (DOJ), regarding its alleged breaches under a deferred prosecution agreement.

In a statement, the Swedish vendor said it has not yet reached a resolution with the DOJ in regard to the alleged breaches and discussions are ongoing.

The money will be recorded in Ericsson’s Q4 results as other operating expenses in the income statement of segment other.

Ericsson said in its statement: “The company believes that this is a sufficiently reliable estimate of the financial penalty associated with any potential breach resolution, and this provision also includes estimated expenses for the previously announced extended monitorship.”

During a corruption probe from the DOJ, Ericsson admitted to paying millions in bribes and falsifying documents between 2000 and 2016, in markets such as Iraq to conduct business. As a result, the vendor agreed to pay US$1 billion to the US government.

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