By Dominic Chopping
STOCKHOLM–Ericsson AB said Thursday that it booked a 2.3 billion Swedish kronor ($219.7 million) provision in the fourth quarter of 2022 ahead of a potential resolution to an alleged deal breach with the US Justice Department.
Ericsson entered a deferred prosecution agreement with the DOJ in 2019 to resolve a past probe into alleged corruption in China, Vietnam and Djibouti, with any breach of the deal potentially opening the Swedish telecommunications-equipment company to prosecution.
Following the deal, the DOJ claimed the company later failed to make adequate disclosures about the discovery of suspicious payments in Iraq ahead of entering the deferred prosecution agreement.
In a statement Thursday, the company said it believes the SEK2.3 billion provision is a sufficiently reliable estimate of the financial penalty associated with any potential breach resolution, although it has not reached a resolution with the DOJ and discussions are ongoing.
The company’s internal investigation and cooperation with authorities relating to the Iraq allegations remains open and ongoing, it added.
Write to Dominic Chopping at email@example.com