STOCKHOLM (Reuters) -Swedish telecoms company Ericsson and “certain (company) officers” have been named as defendants in a class action lawsuit in the United States for making allegedly false and misleading statements about the company’s business in Iraq, Ericsson said in a statement on Friday.
Ericsson is at the centre of a scandal over potential payments to the Islamic State in Iraq. On Wednesday the U.S. Department of Justice said it was in breach of a 2019 deferred prosecution agreement (DPA) for failing to fully disclose details of its operations in Iraq.
“The complaint alleges violations of United States securities laws, in connection with allegedly false and misleading statements principally concerning the Company’s adherence with its compliance and disclosure policies and obligations and the conduct of its business in Iraq,” Ericsson said in a brief statement.
An Ericsson spokesperson could not immediately be reached for comment.
(Reporting by Johan AhlanderEditing by Chris Reese and Sandra Maler)
