Nokia Stock- Ericsson to pay $97mln to Nokia for after settling damages claim
STOCKHOLM – Telecoms gear maker Ericsson has reached an agreement with Finland’s NokiaST to pay a damages claim of 80 million euros ($97 million), it said on Wednesday.
Ericsson said the settlement followed investigations by the U.S. Department of Justice (DoJ) into corruption, including the bribing of government officials. It settled with the DoJ in 2019 and agreed to pay over $1 billion in penalties.
The DoJ had said that Ericsson admitted to conspiring with others to violate the Foreign Corrupt Practices Act from at least 2000 to 2016 by engaging in a scheme to pay bribes and to falsify books and records and by failing to implement reasonable internal accounting controls.
Ericsson said on Wednesday the settlement would impact operating profit (EBIT) by 80 million euros and cashflow by 26 million euros in the second quarter.
“The amount reflects uncertainty, risk, expense, and potential distraction from business focus associated with a potentially lengthy and complex litigation,” it said in a statement.
The Swedish company added that the remainder of the settlement amount would be made in similar instalments in 2022 and 2023, impacting cash flow.
“Nokia can confirm that the information in Ericsson’s press release is accurate. We have no further comment,” a spokeswoman said.
Ericsson did not immediately respond to requests for further comment.
($1 = 0.8247 euros)