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Stockholder alleges Ericsson financial statements were false, artificially inflated stock

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Friday, November 22, 2024

Stockholder alleges Ericsson financial statements were false, artificially inflated stock

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NEW YORK (Legal Newsline) – A retirement system alleges it suffered significant losses and damages because of a decline of market value in shares of a computer networking hardware company.

Bristol County Retirement System, individually and on behalf of all others similarly situated, filed a complaint on April 5 in the U.S. District Court for the Southern District of New York against Telefonaktiebolaget LM Ericsson, Hans Vestberg, Jan Frykhammar, et al. alleging violation of federal securities laws.

According to the complaint, the plaintiff alleges that between April 8, 2013, and July 17, 2017, it purchased or otherwise acquired defendants' shares. The plaintiff alleges the defendants violated International Financing Reporting Standards by "materially overstating service revenues and improperly delaying the recognition of at least $1 billion in expenses on its long-term service projects," which resulted to the decline in the market value of the company's American Depositary Shares (ADS). 

The plaintiff holds the defendants responsible as they allegedly released false and misleading statements and failed to file the necessary corrective disclosures, which artificially inflated the value of the company’s ADS.

The plaintiffs request a trial by jury and seek declaration, award of damages, interest, costs, including attorneys' fees, and such equitable/injunctive or other relief as the court may deem just and proper. It is represented by Christopher J. Keller, Eric J. Belfi and Francis P. McConville of Labaton Sucharow LLP in New York.

U.S. District Court for the Southern District of New York case number 1:18-cv-03021-RJS

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