Ericsson Remains Free of Stock Suit Over Alleged Iraq Corruption

Telefonaktiebolaget LM Ericsson won a federal appeals court decision Tuesday affirming rejection of a lawsuit accusing the company of misleading investors about its anticorruption program and other issues related to alleged bribery in Iraq.

The trial court properly dismissed the shareholders’ suit, the US Court of Appeals for the Second Circuit said.

Anti-corruption statements targeted by investors “consisted of generalized statements about ethics and compliance, such that no reasonable investor would rely upon them,” the panel said in an unsigned, unpublished opinion.

And company statements that US government investigations into possible Foreign Corrupt Practices Act violations had ended weren’t misleading, ...