Ericsson Slumps After DOJ Faults Disclosure Over Iraq Probe (2)

Ericsson, mired in a scandal over potential payments to the terrorist organization ISIS, slumped after the U.S. Department of Justice said it failed to make adequate disclosures about its operations in Iraq before entering a deferred prosecution agreement in 2019.

The DOJ also determined that Ericsson also breached the agreement by “failing to make subsequent disclosure” after signing it, according to a statement by the company on Wednesday. Ericsson shares fell more than 12% at the start of trading in Stockholm.

Ericsson’s dealings in Iraq came to the fore in mid-February, when the company said that it had ...