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Ericsson says U.S. anti-corruption compliance monitoring has ended

Published 06/03/2024, 03:39 AM
Updated 06/03/2024, 05:45 AM
© Reuters. FILE PHOTO: Ericsson logo is displayed on the company's headquarters building in Stockholm, Sweden, January 23, 2024. TT News Agency/Henrik Montgomery via REUTERS/File photon
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COPENHAGEN (Reuters) - Sweden's Ericsson (BS:ERICAs) said on Monday that a four-year programme to monitor the company's compliance with a U.S. anti-corruption agreement had ended on June 2.

The appointment in 2020 of an independent monitor followed a settlement the previous year with the U.S. Department of Justice (DOJ) to resolve a probe into alleged corruption by the company in China, Vietnam, and Djibouti.

The monitor had been assessing the Swedish company's global anti-corruption compliance program and internal controls.

"On March 28, 2024, the monitor certified to DOJ that Ericsson's anti-corruption compliance program has satisfied requirements and is functioning effectively," Ericsson said in a statement.

In connection with the 2019 settlement, Ericsson had agreed to pay a criminal penalty and engage with an independent compliance monitor for three years, a term that was later extended by a year.

© Reuters. FILE PHOTO: Ericsson logo is displayed on the company's headquarters building in Stockholm, Sweden, January 23, 2024. TT News Agency/Henrik Montgomery via REUTERS/File photo

"This is an important milestone in our journey to improve our organisation. Over the past four years we have implemented important compliance requirements and processes," CEO Borje Ekholm said.

Ericsson's share price rose 1.9% by 0723 GMT, outperforming a 0.9% rise in Stockholm's benchmark stock index.

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