Stockholm, Sweden – Swedish telecommunications giant Ericsson (ERICb.ST) is under legal fire as 37 shareholders, including various investment firms and pension funds, have jointly filed lawsuits amounting to a total of 1.8 billion crowns ($170 million), according to a report by the business daily Dagens Industri.
While the lawsuits are filed individually, the actions of the shareholders are carefully coordinated, as per the information provided in the report. An Ericsson spokesperson has refrained from immediate comments but assured that a formal response from the company is imminent.
An attempt to seek confirmation of the lawsuits from the Swedish court mentioned in the report remained unanswered at the time of inquiry.
The lawsuits stem from a substantial 33% drop in the value of Ericsson shares between February 16, 2022, and March 2. According to details unveiled by Dagens Industri, the shareholders attribute this significant decline directly to a statement made by Ericsson CEO Boerje Ekholm on February 15, 2022.
In a published interview with Dagens Industri, Ekholm reportedly revealed the existence of an internal and previously undisclosed report detailing the company’s activities in Iraq. The shareholders claim that this revelation by the CEO triggered the sharp fall in Ericsson’s share price.
The legal actions bring into focus the accountability of corporate communications and the potential financial implications of disclosures made by top executives. Ericsson, a prominent player in the telecommunications industry, now faces an intricate legal battle as it responds to the claims put forth by its own shareholders.
As developments unfold, the outcome of these lawsuits could not only influence Ericsson’s financial standing but also set a precedent for corporate transparency and the responsibilities of leadership in publicly traded companies.