Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Ericsson (ERIC)

Law Offices of Howard G. Smith reminds investors of the upcoming May 2, 2022 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Telefonaktiebolaget LM Ericsson (“Ericsson” or the “Company”) (NASDAQ: ERIC) securities between April 27, 2017 and February 25, 2022, inclusive (the “Class Period”).

Investors suffering losses on their Ericsson investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

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 per 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.

If you purchased or otherwise acquired Ericsson securities during the Class Period, you may move the Court no later than May 2, 2022 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. 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 these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

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