- Ericsson ( NASDAQ: ERIC ) is taking a charge of 2.3B Swedish kronor (about $220M) in its fourth quarter tied to any potential resolution of its Justice Dept. Iraq-related investigation.
- That's the company's "sufficiently reliable" estimate of a financial penalty tied to a resolution of a possible breach of Ericsson's 2019 Deferred Prosecution Agreement.
- Ericsson stock ( ERIC ) is up 6.1% Thursday, on pace to sharply break a three-session losing streak.
- Ericsson will book the charge as Other Operating Expenses.
- The company had entered into the DPA in order to resolve violations of the Foreign Corrupt Practices Act that occurred prior to 2017, and that agreement provided that if Ericsson breached ongoing obligations, it could be prosecuted.
- The DOJ notified Ericsson that it failed to provide documents and information in a timely manner, and didn't report certain information tied to a 2019 Iraq-related internal investigation.
For further details see:
Ericsson takes charge to brace for potential DOJ penalty; stock gains 6%