June 2, 2020

Ericsson’s three-year monitorship begins

On June 2, 2020, Telefonaktiebolaget LM Ericsson, a Swedish telecommunications company, announced that it had selected a monitor and commenced the three-year monitorship period mandated by the company’s Deferred Prosecution Agreement with the US Department of Justice.  In the announcement, Ericsson explained that the monitor’s main responsibilities would include reviewing Ericsson’s compliance with the terms of the DPA, evaluating the company’s progress in implementing compliance program enhancements, and recommending further improvements.

In December 2019 Ericsson entered into the DPA, and a related resolution with the US Securities and Exchange Commission, to resolve DOJ and SEC investigations into the company’s alleged violations of the US Foreign Corrupt Practices Act.  As part of these resolutions, Ericsson agreed to pay a combined sum of over $1.6 billion in penalties, disgorgement, and interest, and to engage an independent compliance monitor for a period of three years.

Ericsson press release