The Justice Department said in a statement the telecommunications firm fell short in disclosing activities after entering a deferred prosecution agreement (DPA) in 2019 to resolve a probe into years of alleged corruption in China, Vietnam and Djibouti.
Under the DPA, the Justice Department had agreed to hold off prosecuting Ericsson for three years if it paid a steep penalty, implemented “rigorous internal controls”, complied with U.S. laws and cooperated fully on any ongoing investigations.
“Ericsson breached the DPA by violating the agreement’s cooperation and disclosure provisions,” the Justice Department said in a statement.
Though such agreement breaches have been historically rare, the Justice Department has warned a number of companies under President Joe Biden as it cracks down on corporate misconduct and repeat offenders.
The company will be required to serve a probation term through June 2024, and agreed to a one-year extension of…
Read More
