Telefonaktiebolaget LM Ericsson Stock Price, News & Analysis

On March 25, 2022, Ericsson filed its Annual Report on Form 20-F for the year ending December 31, 2021, with the U.S. Securities and Exchange Commission (SEC). The report can be accessed through the company's website, and shareholders may request a hard copy. The filing is part of Ericsson's commitment to transparency and compliance with regulatory requirements. The report provides insights into Ericsson's performance, strategies, and financial health, highlighting its role in enabling service providers to maximize connectivity value.

On March 21, 2022, Ericsson's Chairman Ronnie Leten reaffirmed the company's commitment to ethical practices amid ongoing engagement with the U.S. Department of Justice (DOJ). Since 2017, Ericsson has made significant strides in compliance and ethics, with CEO Börje Ekholm leading these efforts. The company has appointed Scott Dresser as Chief Legal Officer to oversee a comprehensive review of its past conduct related to Iraq, collaborating with external counsel. While the company continues to address these matters, further details remain undisclosed.

Ericsson has published its Annual Report 2021, available for download and order as a printed copy. The report includes crucial documents such as the Financial Report, Corporate Governance Report, Remuneration Report, and Sustainability Report. However, following the report's finalization on March 3, 2022, Ericsson faced a legal challenge in the U.S., with a putative class action filed against the company for alleged violations of securities laws, primarily concerning misleading statements about business compliance in Iraq.

Telefonaktiebolaget LM Ericsson will hold its Annual General Meeting on March 29, 2022, at 3 pm, conducted digitally due to COVID-19. Shareholders can vote by post or participate online. Key proposals include a dividend of SEK 2.50 per share in two installments and the election of Carolina Dybeck Happe to the Board, raising the number of members from ten to eleven. The Board also suggests increased fees for Board members and the implementation of a Long-Term Variable Compensation Program, which ties compensation to financial and ESG targets over three years.

AT&T has joined Ericsson's Startup 5G program, marking it as the first U.S. service provider in this global initiative aimed at enhancing the commercialization of 5G technology. Through the program, AT&T aims to tap into a projected $3.7 trillion business opportunity in the 5G consumer market by 2030, collaborating with over 40 global startups. This partnership seeks to foster innovation in consumer experiences leveraging AR and VR technologies. The collaboration is a continuation of AT&T and Ericsson’s ongoing history in developing 5G networks.

Ericsson (NASDAQ: ERIC) enhances its radio access network portfolio with new products designed for 5G deployment and sustainability. Key additions include the dual-band Radio 4490, which boasts 25% lower power consumption, and the high-power version, 4490 HP, offering 50% more output power. The new radios support passive cooling, optimizing energy efficiency. Additional launches include the 64T/R Massive MIMO AIR 6428 and advanced software features that cut power usage by up to 70% during low traffic. These innovations support the acceleration of 5G rollouts globally.

Ericsson (NASDAQ: ERIC) has launched IoT Accelerator Connect, a platform to simplify cellular IoT connectivity for enterprises and developers. This solution addresses integration challenges, allowing enterprises to manage connectivity for millions of devices effortlessly. Features include IoT Accelerator Cloud Connect for secure device connection to cloud endpoints, IoT Accelerator Device Connect for simplified eSIM deployment, and a Developer Portal for application building support. By enhancing access to IoT services, Ericsson aims to accelerate IoT business growth across industries.

Ericsson (NASDAQ: ERIC) has reaffirmed its commitment to transparency amid ongoing media inquiries regarding a 2019 internal investigation into compliance issues in Iraq. The company cited serious breaches of its Code of Business Ethics involving improper financial practices and potential risks related to security and corruption. Although no direct links to terrorist financing were established, remedial actions have been taken, including employee exits and the termination of third-party contracts. Ericsson continues to enhance its compliance programs and is working with legal counsel to address findings from the investigation.

Ericsson (NASDAQ: ERIC) is addressing media inquiries concerning past compliance issues related to its operations in Iraq. An internal investigation conducted in 2019 revealed potential breaches of the Company's Code of Business Ethics by employees and suppliers. Following this, Ericsson implemented personnel and process remediation measures. The Company is currently reviewing the investigation in light of media findings and is prepared to take further action if necessary. Ericsson aims to maintain transparency regarding these matters.