U.S. District Court dismisses securities claim against Ericsson

Rhea-AI Summary

Ericsson (NASDAQ: ERIC) has won a securities litigation case as the U.S. District Court dismissed the claims brought by certain shareholders. The court ruled that Ericsson did not mislead investors and did not violate any disclosure obligation. The decision is subject to appeal. Additionally, Nasdaq Stockholm has closed its review into Ericsson's public disclosure regarding the 2019 Iraq report, stating that the report did not contain information that a reasonable investor would have used for investment decisions.

STOCKHOLM, May 25, 2023 /PRNewswire/ -- Yesterday, the U.S. District Court for the Eastern District of New York dismissed with prejudice the securities litigation against Ericsson (NASDAQ: ERIC) brought by certain shareholders.

In its ruling, the court rejected in full the plaintiff's claims that Ericsson misled investors and concluded that Ericsson did not violate any disclosure obligation to investors. 

The motion to dismiss decision is subject to appeal from the plaintiff. Ericsson will continue to vigorously defend this matter if appealed.

Ericsson has also announced this week that Nasdaq Stockholm has formally closed its review into Ericsson's public disclosure concerning the 2019 Iraq report (read more). Nasdaq, in closing the case, stated that it: "cannot come to the conclusion that the content of the report was such that a reasonable investor would have used such information as part of his/her investment decision".

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Ericsson enables communications service providers and enterprises to capture the full value of connectivity. The company's portfolio spans the following business areas: Networks, Cloud Software and Services, Enterprise Wireless Solutions, Global Communications Platform, and Technologies and New Businesses. It is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's innovation investments have delivered the benefits of mobility and mobile broadband to billions of people globally. Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com

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U.S. District Court dismisses securities claim against Ericsson

 

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SOURCE Ericsson

FAQ

What is the latest news about Ericsson's securities litigation case?

The U.S. District Court dismissed the securities litigation against Ericsson brought by certain shareholders.

What did the court conclude regarding Ericsson's disclosure obligations?

The court ruled that Ericsson did not violate any disclosure obligation to investors.

Is the court's decision final?

The decision is subject to appeal from the plaintiff.

What did Nasdaq Stockholm conclude in its review of Ericsson's public disclosure?

Nasdaq Stockholm closed the case and stated that the 2019 Iraq report did not contain information that a reasonable investor would have used for investment decisions.