Swedish telecommunications giant Ericsson announced the conclusion of the independent compliance monitorship imposed on the company following its 2019 settlement for violations of the Foreign Corrupt Practices Act (FCPA).
In a press release Monday, the company announced the monitorship required as part of a deferred prosecution agreement (DPA) with the Department of Justice (DOJ) ended Sunday.
“The role of the independent compliance monitor over the past four years has been to comprehensively review, assess, evaluate, and test all aspects of the company’s global anti-corruption compliance program and internal controls,” Ericsson said in the release. In March, the company announced the monitor certified its anti-corruption compliance program satisfied the requirements ordered by the DOJ.
The monitorship was originally set to run until June 2023 before being extended an additional year.
The company added it is “continuing to cooperate fully with DOJ and SEC (Securities and Exchange Commission) investigations on historical conduct.”
Börje Ekholm, president and chief executive officer of Ericsson, called the ending of the monitorship “an important milestone in our journey.”
“Over the past four years we have implemented important compliance requirements and processes,” he said in the release. “Our commitment to integrity is rock solid, and we have no tolerance for corruption, fraud, or other misconduct.”
In December 2019, Ericsson agreed to pay more than $1 billion as part of a settlement with the DOJ and SEC for violations of the FCPA.
The DOJ informed the company in October 2021 it breached its obligations under its DPA by failing to provide certain documents and factual information. 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 nearly $207 million for breaching the DPA. Its plea agreement as part of that action also expired Sunday, the company said.
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