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Ericsson Decides To Resolve Bribery Case By Payment Of $1.2 Billion

Ericsson Decides To Resolve Bribery Case By Payment Of $1.2 Billion

Ericsson has come to a decision of agreeing to pay an amount of $1.2 Billion for the resolution of a bribery case that had been brought by the authorities of the United States as per an announcement of the Justice Department on Friday.

The Department of Justice in the United States has charged the firm belonging to Sweden with a conspiracy for the violation of 1977 FCPA.

Ericsson Decides To Resolve Bribery Case By Payment Of $1.2 Billion

A subsidiary of Ericsson has also pleaded guilty to a conspiracy charge on Friday which violates the FCPA.

As a part of this settlement, Ericsson is going to pay a penalty of more than $520 Million and a fine which amounts to nearly $540 Million to the SEC in the United States in a matter that is related.

The US Attorney said that Ericsson has confessed to a campaign of corruption across Kuwait, Indonesia, China, Vietnam, and Djibouti in what was an attempt at strengthening their position in the industry of telecommunication.

The company had as per reports, used an agent and a third-party consultant for making the payments to officials of government and to manage the off the books slush funds.

By slush funds, gifts, and grafts, Ericsson had conducted the business with the principal of money talks guiding them as per the attorney.

The allegations of the prosecutors were that Ericsson had taken part in a scheme of bribery between the years 2000 & 2016 and made it sure that the officials of the company were turning a blind eye to it.

In further violations, there was an admission by Ericsson that it had channeled many millions of dollars in these years through the Chinese consults and created slush funds that were used in providing gifts and favors.

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