Ericsson Accused of Violating FCPA Deal, Company Says

The Justice Department has accused Ericsson of violating its deferred prosecution agreement relating to a 2019 Foreign Corrupt Practices Act case, the Swedish telecommunications company said in an Oct. 21 news release. By "failing to provide certain documents and factual information," Ericsson violated the agreement, but it will have a chance to respond in writing to the nature of the breach, explaining any actions the company can take to remedy the situation, DOJ told Ericsson.

"At this stage it is premature to predict the outcome of these developments," Ericsson said. "DOJ has sole discretion under the DPA to determine whether a breach occurred. Ericsson intends to respond to DOJ and to continue cooperating with DOJ consistent with the terms of the DPA, including requirements regarding production of documents."

The DPA was reached in December 2019 after one of Ericsson's employees was charged with helping to bribe government officials in Djibouti to win a contract valued at around $24 million (see 2109090014). The employee, Afework Bereket, was indicted for his alleged role in this scheme, which also included leading an Ericsson subsidiary to enter into a fraudulent contract with a consulting company that then signed off on fake invoices to hide the bribe payments.