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Ericsson Agrees to Settle Claims with Nokia

05/12/2021 03:46

07:44 AM EDT, 05/12/2021 (MT Newswires) -- Ericsson (ERIC) has agreed to pay Nokia (NOK) 80 million euros ($97 million) as part of a settlement agreement between the companies.

The settlement relates to events that were the subject of a 2019 resolution with the US Department of Justice and US Securities and Exchange Commission of investigations into Ericsson's violations of the US Foreign Corrupt Practices Act, according to a Wednesday news release.

The settlement will have an impact of 80 million euros on EBIT and 26 million euros on cashflow in Q2. The remainder of the settlement amount will be made in similar installments in 2022 and 2023 respectively, impacting cash flow.

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