Ericsson’s Anti-Corruption Compliance Program Receives Independent Certification

Ericsson’s Anti-Corruption Compliance Program Receives Independent Certification

(IN BRIEF) Ericsson announced that its anti-corruption compliance program has been independently certified as effective by the compliance Monitor appointed by the U.S. Department of Justice. This certification marks significant progress since the resolution of historical violations of the Foreign Corrupt Practices Act in 2020. The certification is a condition for the conclusion of the monitorship and plea agreement, expected by June 2, 2024. Ericsson’s Chair of the Board of Directors emphasized the company’s commitment to ethical practices and effective risk management, positioning it competitively in the global landscape. The Monitor’s certification is based on a four-year review of Ericsson’s compliance program, reflecting the commitment of the Board of Directors and senior management to uphold ethical standards.

(PRESS RELEASE) STOCKHOLM, 28-Mar-2024 — /EuropaWire/ — Ericsson (NASDAQ: ERIC), a Swedish multinational networking and telecommunications company, proudly announces that as of March 28, 2024, the independent compliance Monitor appointed by the U.S. Department of Justice (DOJ) has certified the effectiveness of Ericsson’s anti-corruption compliance program. This certification, a pivotal milestone, is a result of Ericsson’s resolution of historical violations of the Foreign Corrupt Practices Act (FCPA) violations dating back to June 2020.

Jan Carlson, Chair of Ericsson’s Board of Directors, affirms the significance of this certification, stating, “This certification is an important and independent verification of Ericsson’s significant progress in strengthening its compliance and controls since entering into the 2019 DOJ settlement. Ericsson’s continued global technology leadership and innovation, coupled with ethical decision making and effective risk management, puts us in a very strong competitive position. This marks a positive step towards completion of the monitorship, which the Company expects at the same time as the expiration of the term of the plea agreement, upon fulfillment of the remaining obligations of that agreement.”

Over the past four years, the independent Monitor diligently assessed and evaluated Ericsson’s global anti-corruption compliance program and internal controls. This comprehensive review included a meticulous examination of the company’s governance structures, operational procedures, and records. The Monitor’s certification underscores the Board of Directors’ and senior management’s unwavering dedication to implementing and upholding the corporate compliance program.

Ericsson remains steadfast in its commitment to transparency, integrity, and accountability, and looks forward to the successful conclusion of the monitorship, heralding a new chapter of enhanced compliance and sustainable growth.



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Ericsson enables communications service providers and enterprises to capture the full value of connectivity. The company’s portfolio spans the following business areas: Networks, Cloud Software and Services, Enterprise Wireless Solutions, Global Communications Platform, and Technologies and New Businesses. It is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson’s innovation investments have delivered the benefits of mobility and mobile broadband to billions of people globally. Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York.

Forward-looking statements

This release includes forward-looking statements, including statements reflecting the Company’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 risks and uncertainties:

– Potential material additional costs and liability resulting from our ongoing compliance with the terms of the Plea Agreement with the DOJ and extended monitorship

– Risk of USG rejecting certification and extending monitorship and potential ongoing USG oversight with respect to suspension and debarment.

– Potential to become a target for public scrutiny as a result of entering into the Plea Agreement with the DOJ, which could damage our reputation and materially and adversely affect our business and prospects

– Risks resulting from entering into the Plea Agreement, including potential debarment from government contracting in the United States and elsewhere, reputational risk, as well as potential counterparty reluctance to continue business relationships

– Potential material additional liability resulting from past conduct, including allegations of past conduct that remains unresolved or unknown in multiple jurisdictions including Iraq, which remains the subject of ongoing investigations by Ericsson and US governmental authorities

– Risks related to internal controls and governance, including the potential to incur material liability in connection with internal controls surrounding payments made to third parties in connection with past conduct in multiple jurisdictions, including Iraq which remains the subject of ongoing investigations by Ericsson and US governmental authorities

– The risk that the ongoing investigations by Ericsson and US governmental authorities result in a conclusion by Ericsson or US governmental authorities that the Company’s past conduct included making or having responsibility for making payments to a terrorist organization or other improper payments, which could lead to material additional liability

– Risks related to our ongoing compliance with obligations under the National Security Agreement entered into in connection with Ericsson’s acquisition of Vonage, which may adversely affect the Vonage business and subject the Company to additional liabilities

– 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

– Technology and industry trends including the regulatory and standardization environment in which we operate, competition and our customer structure

– Other factors included in our filings with the U.S. Securities and Exchange Commission (the “SEC”), including the risk factors described throughout our 2023 Annual Report

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 reports, and in “Risk Factors” in the Annual Report 2023.

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.

SOURCE: Telefonaktiebolaget LM Ericsson

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