A group of thirty-seven Ericsson shareholders, including investment firms and pension funds, have collectively filed lawsuits against the Swedish telecoms company, seeking a total of 1.8 billion Swedish crowns (approximately $258 million). The shareholders claim that the company’s CEO, Boerje Ekholm, made a disclosure regarding activities in Iraq that caused a significant decline in the company’s stock value, according to a report by the business daily, Dagens Industri.
Ericsson has faced extensive criticism over the past year due to its handling of an internal investigation into its operations in Iraq and a scandal involving potential payments to the Islamic State. The shareholders’ lawsuits have been filed separately in a Swedish court, but they are acting in a coordinated manner, as reported by Dagens Industri.
In response to the lawsuits, Ericsson has stated that it completely disputes the claims and intends to vigorously defend itself in the matter. The company has referred to the situation as unprecedented in Swedish litigation and contrary to fundamental principles of Swedish corporate law.
The shareholders are seeking compensation for the sharp decline in Ericsson’s shares since February 16, 2022, following the publication of CEO Ekholm’s disclosure about an internal report on company activities in Iraq during an interview. Since then, the company’s share price has halved, reaching 52.71 crowns as of the latest trading on Friday.
Earlier this year, Nasdaq Stockholm conducted a review of the company’s public disclosures related to the report. The conclusion of the review was that the content of the report did not provide information that a reasonable investor would have used for making investment decisions.
