The Law Offices of Frank R. Cruz reminds investors of the upcoming May 2, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Telefonaktiebolaget LM Ericsson (“Ericsson” or the “Company”) (NASDAQ: ERIC) securities between April 27, 2017 and February 25, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On February 15, 2022, Ericsson disclosed results of an internal investigation that detailed suspect payments made to use alternate transport routes in connection with circumventing Iraqi Customs, at a time when militant organizations, including ISIS, controlled some routes. The Company found “violations of Ericsson’s internal financial controls; conflicts of interest; non-compliance with tax laws; and obstruction of the investigation.” Though the investigation closed in 2019, the Company reportedly “did not find it material enough to disclose the findings” but “revisited its stance after enquiries about the probe from media outlets.”
On this news, Ericsson’s American Depositary Shares (“ADS”) price fell $1.45, or 11.6%, to close at $11.01 per ADS on February 16, 2022, thereby injuring investors.
Then, on February 27, 2022, the International Consortium of Investigative Journalists published a report alleging that Ericsson had reportedly made “tens of millions of dollars in suspicious payments” over nearly a decade to keep its business in Iraq. The report also claimed that “a spreadsheet lists company probes into possible bribery, money laundering and embezzlement by employees in Angola, Azerbaijan, Bahrain, Brazil, China, Croatia, Libya, Morocco, the United States and South Africa[,]” which “have not been previously disclosed.”
On this news, Ericsson’s ADS price fell $0.84, or 8.3%, to close at $9.28 pers ADS on February 28, 2022, thereby injuring investors further.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Ericsson overstated the extent to which it had reformed its business practices to eliminate the use of bribes to secure business in foreign countries; (2) Ericsson had paid bribes to the terrorist group the Islamic State in Iraq and Syria to gain access to certain transport routes in Iraq; (3) accordingly, the Company’s revenues derived from its operations in Iraq were, in at least substantial part, derived from unlawful conduct and thus unsustainable; and (4) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
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If you purchased or otherwise acquired Ericsson securities during the Class Period, you may move the Court no later than May 2, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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