• 117
  • 4
  • Favorite

Ericsson Stock Surges After $220 Million Provision For Potential DPA Breach Resolution With DOJ

Dow Jones2023-01-12

The U.S.-listed shares of Ericsson (ERIC-B.SK) surged 6.3% toward a one-month high in premarket trading Thursday, after the Sweden-based communications services company said it will record a SEK2.3 billion ($220 million) charge for a potential resolution with the U.S. Department of Justice regarding alleged breaches under its 2019 Deferred Prosecution Agreement $(DPA.UK)$.

The company said it believes the charge, which will be booked in fourth-quarter results, is a "sufficiently reliable estimate" of the penalty associated with any breach resolution.

Ericsson said it has not yet reached a resolution with the DOJ, and discussions remain open and ongoing. The company agreed in December to extend its independent compliance monitorship through June 2024.

The company had entered into the DPA to resolve violations of the Foreign Corrupt Practices Act prior to 2017. The stock has slipped 0.3% over the past three months through Wednesday, while the S&P 500 has rallied 11.0%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment4

  • vic78
    ·2023-01-13
    👍👍
    Reply
    Report
  • Andy Fong
    ·2023-01-12
    Ok
    Reply
    Report
  • MrHuattt
    ·2023-01-12
    Ok
    Reply
    Report
    Fold Replies
    • MrHuattt
      suee
      2023-01-12
      Reply
      Report
  • plasticbag
    ·2023-01-12
    Ok
    Reply
    Report
    Fold Replies
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial