·
· Separately,
· As part of the settlement,
· The combined payment of
The resolution relates to historical FCPA breaches ending Q1 2017. While the Company had a compliance program and a supporting control framework, they were not adequately implemented. Specifically, certain employees in some markets, some of whom were executives in those markets, acted in bad faith and knowingly failed to implement sufficient controls. They were able to enter into transactions for illegitimate purposes and, together with people under their influence, used sophisticated schemes in order to hide their wrongdoing.
The resolution marks the end of the FCPA-related investigations into
The DOJ proceeding is a criminal enforcement action and the
DOJ resolution
In parallel to the investigations, the Company has since 2016, together with external expert advisors, conducted a comprehensive review of the Company's anti-corruption program. Based on this review,
Pursuant to the resolutions,
The settlement with the
DETAILS OF IMPROVED ETHICS AND COMPLIANCE PROGRAM
Improvements to
· Additional resources for the Compliance and Investigations functions.
· Reorganizing the allegation management process to ensure a centralized, professional intake of allegations, conduct of investigations and remediation.
· Refining the risk assessment process to consist of a tiered approach and systematic risk mitigation methodology.
· Enhancing the due diligence process of third-parties, including the overall monitoring of third-party engagements.
· Introducing more sophisticated analytic tools to better identify and prevent high-risk transactions and engagements.
· Enhancing the ethics and compliance vetting process for senior leaders.
· Refreshing compliance training modules for employees, including workshops and face-to-face training for employees in exposed roles.
· Enhancing the internal anti-corruption and compliance related awareness campaigns (including the Company's zero tolerance for corruption).
INVITATION TO MEDIA AND ANALYST CALL
The company will hold a conference call for journalists, financial analysts and investors.
The conference call will begin
To join the conference call, please phone one of the following numbers:
International/
US: +1 631 913 1422 (Toll-free US: +1 855 857 0686)
PIN code: 80473445 #
A live audio webcast of the conference call will be available at www.ericsson.com/investors and www.ericsson.com/newsroom
Replay:
A replay of the conference call will be available from about one hour after the conference call has ended until
International/
US replay number: +1 (866) 931 1566
PIN code replay: 301305281#
An on-demand webcast will be available at www.ericsson.com/investors and www.ericsson.com/newsroom approximately one hour after the webcast ended.
NOTES TO EDITORS
For media kits, backgrounders and high-resolution photos, please visit www.ericsson.com/press
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ABOUT
Forward-looking statements
This release includes forward-looking statements, including statements reflecting management's current views relating to the growth of the market, future market conditions, future events, financial condition, and expected operational and financial performance, including, in particular the following:
- Our goals, strategies, planning assumptions and operational or financial performance expectations
- Industry trends, future characteristics and development of the markets in which we operate
- Our future liquidity, capital resources, capital expenditures, cost savings and profitability
- The expected demand for our existing and new products and services as well as plans to launch new products and services including research and development expenditures
- The ability to deliver on future plans and to realize potential for future growth
- The expected operational or financial performance of strategic cooperation activities and joint ventures
- The time until acquired entities and businesses will be integrated and accretive to income
- Technology and industry trends including the regulatory and standardization environment in which we operate, competition and our customer structure.
The words "believe," "expect," "foresee," "anticipate," "assume," "intend," "likely," "projects," "may," "could," "plan," "estimate," "forecast," "will," "should," "would," "predict," "aim," "ambition," "seek," "potential," "target," "might," "continue," or, in each case, their negative or variations, and similar words or expressions are used to identify forward-looking statements. Any statement that refers to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
We caution investors that these statements are subject to risks and uncertainties many of which are difficult to predict and generally beyond our control that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.
Important factors that could affect whether and to what extent any of our forward-looking statements materialize include, but are not limited to, the factors described in the section "Risk Factors" in the latest interim report, and in "Risk Factors" in the Annual Report 2018.
These forward-looking statements also represent our estimates and assumptions only as of the date that they were made. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this release, to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events, whether as a result of new information, future events or otherwise, except as required by applicable law or stock exchange regulations.
https://news.cision.com/ericsson/r/ericsson-reaches-resolution-on-u-s--fcpa-investigations,c2985144
https://mb.cision.com/Main/15448/2985144/1157642.pdf
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