Ericsson to pay 80 million euros after settling damages claim with Nokia
Reuters2021-05-12
STOCKHOLM, May 12 (Reuters) - Telecoms gear maker Ericsson
has reached an agreement with Finland's Nokia
to pay a settlement of 80 million euros ($97.0 million), it said on Wednesday.
Ericsson said the settlement would impact operating profit (EBIT) by 80 million euros and cashflow by 26 million euros in the second quarter.
"The amount reflects uncertainty, risk, expense, and potential distraction from business focus associated with a potentially lengthy and complex litigation," it said in a statement.
The Swedish company added that the remainder of the settlement amount would be made in similar installments in 2022 and 2023 respectively, impacting cash-flow.
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