Ericsson to Pay $206 Million for Breaking US Deal in Bribery Case

STOCKHOLM—Swedish telecom equipment maker Ericsson has agreed to plead guilty to U.S. foreign corruption violations and pay more than $206 million for breaking a deal with the Justice Department over charges of bribery and falsifying records in countries from China to Kuwait.

According to the U.S. Justice Department, the Stockholm-based company violated the 2019 Agreement by not providing documents or information required for the investigation of the agency and the bringing charges against those accused.

Ericsson is a supplier of equipment for fast 5G networks. However, it used intermediaries to bribe governments officials and handle illicit cash stashes in Djibouti (China, Vietnam, Indonesia, and Kuwait), prosecutors claim.

“The company’s breach of its obligations … indicate that Ericsson did not learn its lesson, and it is now facing a steep price for its continued missteps,” U.S. attorney Damian Williams, Southern District of New York stated in prepared remarks