Ericsson will pay EUR 80 million to Nokia for settle a damages claim relating to events that were the subject of a 2019 resolution with the U.S. Department of Justice (DOJ) and U.S. Securities and Exchange Commission (SEC). The matter concerns Ericsson’s violations of the U.S. Foreign Corrupt Practices Act (FCPA).
Ericsson says the payment to Nokia reflects uncertainty, risk, expense, and potential distraction from business focus associated with a potentially lengthy and complex litigation.
“As communicated in 2019, the resolution with DOJ related to criminal charges of books and records and internal controls violations of the FCPA in five countries including in Djibouti and a guilty plea to one instance of bribery in Djibouti. The resolution with the SEC related to allegations of violations of the books and records and internal controls provision of the FCPA in six countries and of the bribery provision of the FCPA in three of these six countries.”
