Swedish telecommunications company Ericsson announced its independent monitor appointed by the Department of Justice (DOJ) certified its anti-corruption compliance program satisfies the requirements ordered by the U.S. agency.
The certification is a requirement to end the company’s monitorship and a condition as part of its deferred prosecution agreement (DPA) with the DOJ, Ericsson said in a press release Thursday. The monitorship, which originated from historical violations of the Foreign Corrupt Practices Act (FCPA), is expected to conclude June 2.
The monitor team accessed the company’s board, executives, employees, global operations, and books and records during its four-year engagement. Its final certification included “an assessment of the board of directors’ and senior management’s commitment to, and effective implementation of, the corporate compliance program,” Ericsson said in the release.
In December 2019, Ericsson agreed to pay more than $1 billion as part of a settlement with the DOJ and Securities and Exchange Commission for violations of the FCPA. The DOJ’s DPA included a three-year independent compliance monitorship.
The DOJ informed the company in October 2021 it breached its obligations under the DPA. In February 2022, Ericsson admitted it found evidence of “corruption-related misconduct in Iraq,” which potentially included payments to ISIS. A month later, the DOJ determined Ericsson breached the DPA a second time for “insufficient” disclosures.
In March 2023, the company agreed to pay $207 million for breaching the DPA and had its monitorship extended through June.
Jan Carlson, Ericsson’s chair of the board of directors, said the certification is “an important and independent verification of Ericsson’s significant progress in strengthening its compliance and controls.”
He added it is a “positive step towards completion of the monitorship,” which the company expects to expire at the same time as its plea agreement, upon fulfillment of its remaining obligations.
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