: Ericsson stock rallies after agreement with DOJ, including guilty plea for FCPA breaches and a fine of over $200 million


The U.S.-listed shares of Telefon AB L.M. Ericsson ERIC, +3.45% ERIC.B, +4.33% leaped 3.3% in premarket trading, after the Sweden-based communications services company disclosed that it reached an agreement with the U.S. Department of Justice (DOJ) to resolve “non-criminal breaches” of 2019 Deferred Prosecution Agreement (DPA), which the company entered into to resolve previously disclosed violations of the Foreign Corrupt Practices Act (FCPA). Under terms of the agreement, Ericsson will plead guilty, relating to conduct prior to 2017, and pay a fine of about $206.73 million. The company said the agreement brings the DPA to an end. “Taking this step today means that the matter of the breaches is now resolved,” said Ericsson Chief Executive Börje Ekholm. “This allows us to focus on executing our strategy while driving continued cultural change across the company with integrity at the center of everything we do.” The stock has dropped 15.9% over the past three months through Thursday, while the S&P 500 SPX, +1.61% has slipped 2.2%.

This article was originally published by Marketwatch.com. Read the original article here.

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