Swedish networking and telecom company Ericsson has reported that the DOJ has accused the company of violating its 2019 deferred prosecution agreement by failing to comply with its affirmative disclosure obligations — highlighting the importance of internal investigations and potential self-disclosures to a monitor and/or DOJ while under a DPA — particularly as DOJ refocuses on corporate enforcement.
In December 2019, Ericsson paid over $1 billion to resolve DOJ and SEC FCPA investigations into the company’s payment of bribes to win business from state-owned telecommunications company customers in Djibouti, China, Vietnam, Indonesia, and Kuwait. The resolution included a three-year DPA, which required — among other things — that Ericsson self-disclose “any evidence or allegation of conduct that may constitute a violation of the FCPA.” The DOJ has now told them that a disclosure made before executing the DPA about an earlier investigation was insufficient, and their failure to make subsequent disclosures on the matter was in violation of the DPA.
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