Ericsson Announces Settlement with Nokia

Ericsson Announces Settlement with Nokia

Foto: Depositphotos

Ericsson has reached an agreement with Nokia for settling a damages claim against the Swedish company. The settlement relates to events that were the subject of a 2019 resolution with the US Department of Justice and U.S. Securities and Exchange Commission of investigations into Ericsson’s violations of the U.S. Foreign Corrupt Practices Act.

Ericsson agreed to pay €80 million to settle a damages claim by Nokia related to a bribery case in the US. The Sweden-based vendor stated the payment relates to a $1.06 billion settlement agreed with the US government in 2019 after it admitted to bookkeeping breaches and bribery spanning 16 years.

Ericsson noted the amount it will pay to cover damages claimed by Nokia reflected uncertainty, risk, expense and potential distraction from business focus which could be caused by lengthy and complex litigation. It expects the payment to impact its earnings before taxes in the current quarter, with a €26 million hit on cash flow. There will be lingering effects, with the payment to be spread over three instalments.

More from category

Telefonica Posts Record Profit on Tower Sale

Telefonica Posts Record Profit on Tower Sale

31 Jul 2021 comment

Spanish based operator Telefonica raised its full year outlook after posting an all-time record net income.

Strong First Half for Nokia, 2021 Outlook Revised Upwards

Strong First Half for Nokia, 2021 Outlook Revised Upwards

31 Jul 2021 comment

Nokia's net sales grew 9 percent on constant currency in the second quarter of 2021.

Samsung's Revenue Went Up 20 Percent in the Last Quarter

Samsung's Revenue Went Up 20 Percent in the Last Quarter

30 Jul 2021 comment

During the second quarter of 2021, Samsung made a net profit of KRW9.6 trillion ($8.4 billion), up from KRW5.6 trillion in the same period last year.