The newspaper "Dagens Industri" reported on Friday that thirty-seven shareholders of the Swedish telecommunications company Ericsson are suing the company for 1.8 billion Swedish kronor (170 million dollars), claiming that the CEO's disclosure regarding the company's activities in Iraq caused a decline in stock prices.
The report stated that the shareholders, including several investment firms and pension funds, filed separate lawsuits in a Swedish court, but their actions are coordinated. The company stated in a release, "Ericsson opposes all allegations and intends to vigorously defend itself in this matter, which is unprecedented in Swedish jurisprudence and contradicts fundamental principles of Swedish corporate law."
The report noted that the shareholders are seeking compensation for the steep drop in Ericsson's stock since February 16, 2022, after the company’s CEO disclosed details in an interview about an internal report related to the company's activities in Iraq. Since then, the stock price has decreased by half, reaching 52.71 kronor as of last Friday.
In May of this year, Nasdaq Stockholm concluded a review of the company's public disclosures regarding the report. It found that "there is no conclusion to be reached that the content of the report could be used by any shareholder in a reasonable manner as part of their investment decision."
The company and its CEO, Börje Ekholm, faced severe criticism last year for their handling of an internal investigation regarding the company's operations in Iraq and a scandal related to potential payments to the Islamic State (ISIS).
