ERIC Ericsson

   By Maria Armental 
 

Ericsson AB (ERIC) pleaded guilty to a conspiracy charge and agreed to pay more than $1 billion to resolve a foreign bribery case, according to the Justice Department.

Federal prosecutors accused the Swedish telecom giant of engaging in a campaign of corruption in five countries over 17 years.

"Through slush funds, bribes, gifts, and graft, Ericsson conducted telecom business with the guiding principle that 'money talks'," U.S. Attorney Geoffrey S. Berman said in a statement.

The resolution covers Ericsson's criminal conduct in Djibouti, China, Vietnam, Indonesia and Kuwait, the Justice Department said.

Under the terms of the resolution, filed Friday in Manhattan federal court, Ericsson entered into a deferred prosecution agreement, allowing it to avoid a criminal indictment on charges Ericsson conspired to violate the anti-bribery, books and records, and internal controls provisions of the Foreign Corrupt Practices Act. As part of the deferred prosecution agreement, Ericsson agreed to continue to cooperate with the Justice Department, enhance its compliance program, and to retain an independent compliance monitor for three years.

Deferred prosecution agreements are a key tool used by federal prosecutors in policing corporate wrongdoing, forestalling a criminal conviction provided specific requirements are met.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

December 06, 2019 17:57 ET (22:57 GMT)

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