Ericsson Sued by Investor Over Disclosure of Possible ISIS Bribe

Ericsson and its Chief Executive Officer Borje Ekholm were accused in a U.S. lawsuit of misleading investors about the company’s role in bribes allegedly paid to a terrorist organization ISIS to win business in Iraq.

The suit, which also names Chief Financial Officer Carl Mellander, was filed by investor David Nyy in New York federal court on Thursday and seeks class-action status. Nyy claims actions by the telecommunications company violated U.S. securities laws and resulted in “significant losses and damage” to investors.

Ericsson, which paid more than $1 billion in 2019 to avoid U.S. prosecution in a long-running corruption ...