BusinessCompany NewsEx-Ericsson FD named in damaging lawsuit

Ex-Ericsson FD named in damaging lawsuit

Law firm claims that former FD Karl-Henrik Sundstrom and chief exec knew of earnings turmoil a significant length of time before they informed the market

Karl-Henrik Sundstrom, Ericsson’s former finance chief, is at the centre of a
civil action lodged against the mobile phone giant that could run to millions of
dollars if it is found liable.

Together with chief exec Carl Henric Svanberg, Sundstrom has been accused by
US law fim Coughlin Stoia Geller Rudman & Robbins of delaying news of a
profit warning.

Coughlin Stoia has alleged that the pair knew of the earnings issues a month
before they held an investor conference in London on 11 September.

When the market was informed on 15 October, shareholders lost out as
Ericsson’s market value nosedived by about $15bn (£7.2bn). Sundstrom resigned
soon after the warning was issued.

Coughlin Stoia has filed the lawsuit and is seeking compensation for any
investors that bought shares between 11 September and 15 October.

Ericsson said: ‘At the moment we are reviewing the class action suit and any
further comment will be decided upon later.’

Furrther reading

Tate
& Lyle FD under pressure

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