Ericsson sets aside $1.2 bn for US corruption case, flags third-quarter hit

Mobile telecom gear maker Ericsson said on Thursday its third-quarter results will be hit by a 12 billion Swedish krona ($1.23 billion) provision it was making for U.S. probes into past corruption allegations.

The investigations, by the U.S. Securities and Exchange Commission and the Department of Justice, are linked to Ericsson’s compliance with the U.S. Foreign Corrupt Practices Act (FCPA), Ericsson said.

The Swedish company said it estimated a monetary sanction of $1 billion, along with additional related costs, to settle the investigations.

“The process to find a resolution is still ongoing,” Ericsson said.