Ericsson AB said it expects to pay $1 billion to resolveinvestigations by U.S. authorities into business ethics breaches insix countries, including China, in one of the costliest corruptioncases on record.

The Sweden-based telecommunications equipment maker said in astatement Thursday it has made a provision of 12 billion kronor($1.2 billion) to cover the penalty, and this will dentthird-quarter earnings. Ericsson said it can't comment on detailsof the process with the U.S. Securities and Exchange Commission(SEC) and Department of Justice.

Ericsson has cooperated with investigators since 2013, when theSEC began its probe into possible Foreign Corrupt Practices Act(FCPA) violations. It hasn't disclosed details of the ethicsbreaches under investigation, though it said at the time that theprobe related to a payment system used to win contracts in the1990s. It said Thursday that the investigation covers a periodending in the first quarter of 2017 and involves FCPA breaches inChina, Djibouti, Indonesia, Kuwait, Saudi Arabia, and Vietnam.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.