Cases
Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC)
Securities Class Action
Overview
Overview
- Date:
- 4/9/2018
- Company Name:
- Telefonaktiebolaget LM Ericsson
- Stock Symbol:
- ERIC
- Class Period:
- FROM 4/8/2013 TO 7/17/2017
- Status:
- Closed/Complete
- Court:
- U.S. District Court: Southern District of New York
NEW YORK, April 9, 2018 – Bragar Eagel & Squire, P.C. announces to investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) securities between April 8, 2013 and July 17, 2017 (the “Class Period”). Investors have until June 5, 2018 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Ericsson provides computer networking hardware, software, and related services to telecommunications companies around the world. Services provided by the Company include systems integration, network rollouts, and consulting projects that are often structured as multiyear contracts. In 2015, revenue from services accounted for more than half of the Company’s total revenues.
During the Class Period, Ericsson claimed that its financial statements were prepared in accordance with International Financial Reporting Standards (“IFRS”). However, Defendants violated IFRS by materially overstating service revenues and improperly delaying the recognition of at least $1 billion in expenses on its long-term service projects.
The Company’s improper accounting on the long-term service project contracts and/or the associated material impact on Ericsson’s financial performance was revealed through a series of disappointing financial results, culminating on July 18, 2017, when the Company revealed that it had identified 42 long-term service contracts to date with total annual sales of almost $1 billion that Ericsson would exit, renegotiate, or transform. On this news, Ericsson ADS price fell $1.21 per share, or 16.62 percent, to close at $6.07 per share on July 18, 2017.
If you purchased or otherwise acquired Ericsson securities during the Class Period or continue to hold shares purchased prior to the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
Ericsson provides computer networking hardware, software, and related services to telecommunications companies around the world. Services provided by the Company include systems integration, network rollouts, and consulting projects that are often structured as multiyear contracts. In 2015, revenue from services accounted for more than half of the Company’s total revenues.
During the Class Period, Ericsson claimed that its financial statements were prepared in accordance with International Financial Reporting Standards (“IFRS”). However, Defendants violated IFRS by materially overstating service revenues and improperly delaying the recognition of at least $1 billion in expenses on its long-term service projects.
The Company’s improper accounting on the long-term service project contracts and/or the associated material impact on Ericsson’s financial performance was revealed through a series of disappointing financial results, culminating on July 18, 2017, when the Company revealed that it had identified 42 long-term service contracts to date with total annual sales of almost $1 billion that Ericsson would exit, renegotiate, or transform. On this news, Ericsson ADS price fell $1.21 per share, or 16.62 percent, to close at $6.07 per share on July 18, 2017.
If you purchased or otherwise acquired Ericsson securities during the Class Period or continue to hold shares purchased prior to the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.