Ericsson sued for $170m by shareholders

Ericsson sued for $170m by shareholders

Ericsson building sign

Ericsson is being sued by 37 of its shareholders for a combined US$170 million over an investigation into its actions in Iraq, which reportedly depressed its share price according to Reuters.

A statement indicated that more were to follow.

Ericsson and its Boerje Ekholm, its CEO have been criticised for its handling over an internal probe, including a scandal involving potential payments to Islamic State.

Last year, the vendor said it would start a “comprehensive review” of the scandal.

The shareholders include several investment firms and pension funds and have filed separate lawsuits with the Swedish court.

"Ericsson disputes the claims in their entirety and intends to defend itself vigorously in this matter, which is unprecedented in Swedish litigation and contrary to fundamental principles of Swedish corporate law," the company said in an emailed statement.

Nasdaq Stockholm concluded a review into the company’s public disclosures, noting that it “"cannot come to the conclusion that the content of the report was such that a reasonable investor would have used such information as part of his/her investment decision”.

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