Tech

Ericsson accused of violating bribery settlement with Justice Department

According to a Swedish telecommunications company, US prosecutors have determined that Ericsson AB has violated the terms of the $ 1.06 billion settlement agreement signed in 2019 for bribery claims in five countries.

The Stockholm-based company has been informed by the US Department of Justice that it has breached the contract because it did not provide specific documents or information related to the settlement.

Ericsson said he would continue to work with the Department of Justice and have the opportunity to respond to the Department of Justice’s letter.

The company signed a contract with the Justice Department in 2019 to resolve allegations of bribery that authorities said it occurred in Djibouti, China, Vietnam, Kuwait and Indonesia between 2000 and 2016.

The deal, known as the postponed prosecution agreement, filed criminal charges for conspiracy to violate the Foreign Corrupt Practices Act, provided Ericsson embarked on certain reforms and continued to work with prosecutors for three years. Paused.

A subsidiary, Ericsson Egypt Ltd., also pleaded guilty to colluding and violating the abstinence law.

Ericsson has also signed a parallel agreement with the US Securities and Exchange Commission on allegations of using a third party to bribe officials in Saudi Arabia, China and Djibouti. The penalty imposed on the basis of the two transactions was one of the highest ever imposed for an FCPA breach.

The Department of Justice may issue public warnings about the consequences of violating the terms of a postponed prosecution agreement, but such violations are rare.

The letter to Ericsson will be sent in early October after a senior Justice Department official stated that a breach of such an agreement could lead to more severe penalties than originally agreed.

“We need to ensure that those who benefit from such arrangements comply with their responsibilities,” said John Carlin, a senior member of the Deputy Attorney General’s Office. “If not, we should expect serious consequences.”

Ericsson is Huawei Technologies Co. Has emerged as one of the US champions in the competition to lead the development of 5G technology around the world by Chinese companies such as.

U.S. officials argue that Huawei and other Chinese companies pose risks to U.S. national security due to their close relationship with the Chinese government and the potential backdoor access they can provide to their telecommunications networks. .. Huawei has denied allegations of using its technology to spy.

Write in Dylan Tokar (dylan.tokar@wsj.com)

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Ericsson accused of violating bribery settlement with Justice Department

Source link Ericsson accused of violating bribery settlement with Justice Department

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