The SEC`s complaint alleges that Ericsson violated the anti-bribery, books and records, and internal control provisions of federal valuable documents laws. Ericsson agreed to pay more than $539 million in deposit and bias interest to pay the SEC`s fees. To resolve the DOJ`s parallel criminal prosecutions, Ericsson agreed to pay a $520 million fine and reach an agreement on deferred prosecutions. An Ericsson subsidiary, Ericsson Egypt, has pleaded guilty to conspiracy to violate FCPA anti-bribery rules. Ericsson must maintain an independent compliance monitor for at least three years. As part of its breakthrough transaction, Ericsson entered into a 3-year prosection agreement in Southern New York that regulated the criminal and civil investigation with the Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”). The $1 billion payment includes a $520 million fine to the DOJ and $540 million to the SEC for a related case that stems from the same facts. The SEC`s civil lawsuit, filed on December 6, 2019, accused Ericsson of violating the FCPA`s anti-corruption and internal control rules. Ericsson has also agreed to cooperate with the DOJ in all ongoing investigations and prosecutions regarding behavior, including individuals, to improve its compliance program and appoint a three-year independent compliance monitor.

While Ericsson`s large monetary deal is somewhat unusual, the three-year corporate supervision imposed on the company is in line with both DoJ guidelines and previous FCPA resolutions with other telecom companies, including MTS and VimpelCom, in the Netherlands.