American Law Firm Accuses Ericsson of Misleading Investors

5:55 am on November 30, 2007 | Category: Business, Corporate, Law

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U.S. law firm, Labaton Sucharow LLP, has filed a class-action lawsuit on behalf of shareholders in the Swedish telecom equipment giant, Ericsson, alleging that the company made false and misleading statements earlier this year.

Ericsson, the world’s largest manufacturer of mobile networking equipment, shocked investors in October with a profit warning that sent its shares down 30%. Another announcement on November 21 revealed that fourth-quarter revenues would be lower than expected, and caused Ericsson shares to slump a further 11%.

As recently as September, the Swedish company had been making presentations to investors describing its end-of-year prospects as upbeat. Labaton Sucharow said that it was filing the suit on behalf of all investors who purchased Ericsson stock between February 2 and November 20, 2007.

Another U.S. firm, Coughlin Stoia Geller Rudman & Robbins LLP, filed a similar action against Ericsson several days ago.

Ericsson has yet to respond to the lawsuits.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock