Mobile telecom gear maker Ericsson announced on Thursday that it has dismissed 50 people over a U.S. corruption probe that could lead to a financial penalty, Reuters informed.
The Swedish company has previously said that it initially received questions from U.S. authorities in March 2013 and that it has been cooperating with the U.S. Securities and Exchange Commission and the U.S. Department of Justice.
“I’m trying to say that we have taken quite a lot of actions and done quite a lot of activities,” Ericsson Chief Executive Borje Ekholm told a press conference, after the group reported stronger-than-expected third-quarter results.
The 50 employees have left the company since Ericsson began its own investigation in 2013, a company spokesman said, but declined to be more precise. Several regions were affected, but the spokesperson declined to give details.
“We believe that the resolution of these matters will likely result in monetary and other measures, the magnitude of which cannot be estimated currently but may be material,” Ekholm stressed in a statement.
Findings of corruption by U.S. authorities can result in hefty fines for companies under the Foreign Corrupt Practices Act.
According to Financial Times, the substantial fine also overshadowed a strong third-quarter performance at Ericsson, as investment in new 5G networks helped to return the Swedish telecoms equipment company to profit.
Revenue rose 9 per cent year-on-year, excluding the impact of currency movements, to SKr54bn ($6bn) while pre-tax profit was SKr2.6bn, compared with a SKr4bn loss in the previous period. Organic revenue growth was 1 per cent, FT adds.
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