The Disciplinary Committe of Nasdaq Stockholm finds no reason to impose a sanction on Telefonaktiebolaget LM Ericsson
Stockholm, September 23, 2019 – The Disciplinary Committee of Nasdaq Stockholm has in its trial found that Telefonaktiebolaget LM Ericsson (”Ericsson” or ”the Company”) has not breached Nasdaq Stockholm’s Rulebook for Issuers (”The Rulebook”) and has therefore not imposed a sanction on the Company.
The Disciplinary Committee has in the case tried whether Ericsson – by not meeting Nasdaq Stockholm’s (“the Exchange”) request for a correction of the Company’s reporting of pension obligations in its financial report – has acted in breach of generally accepted behavior in the securities market.
According to the Disciplinary Committee, generally accepted behavior in the securities market normally means that issuers follow the Exchange’s instructions. The Disciplinary Committee does however note that the Company has not been able to follow the Exchange’s instructions without risking an unclean audit report as well critique from the SEC. In addition, the Company did not have the opportunity to have the Exchange’s decision in the accounting issue reviewed.
Given the above background and the fact that the Company has filed additional information in its financial reporting after the Exchange’s request as well as the fact that the Exchange has found the case to not be of serious nature, the Disciplinary Committee finds that the failed correction is not enough to conclude that the Company has acted in breach of generally accepted behavior in the securities market.
A detailed description of the matter and the Disciplinary Committee’s decision is available at:
https://www.nasdaq.com/solutions/decisions-sanctions-stockholm-2019
Participating in the Committee’s decision were former Supreme Court Justice Marianne Lundius, Company Director Carl-Johan Högbom, Company Director Jack Junel, MBA Ragnar Boman and former Authorized Public Accountant Svante Forsberg.
About the Disciplinary Committee
The role of Nasdaq Stockholm’s Disciplinary Committee is to consider suspicions regarding whether Exchange Members or listed companies have breached the rules and regulations applying on the Exchange. If the Exchange suspects that a member or company has acted in breach of the rules, the matter is referred to the Disciplinary Committee. Nasdaq Stockholm investigates the suspicions and pursues the matter and the Disciplinary Committee issues a ruling regarding possible sanctions. The sanctions possible for listed companies are a warning, a fine or delisting. The fines that may be imposed range from one to 15 annual fees. The sanctions possible for Exchange Members are a warning, a fine or debarment. Fines paid are not included in the Exchange’s business but are attributed to a foundation supporting research in the securities market. The Disciplinary Committee's Chairman and Deputy Chairman must be lawyers with experience of serving as judges. At least two of the other members of the Committee must have in-depth insight into the workings of the securities market.
Members: Former Supreme Court Justice Marianne Lundius (Chairman), Supreme Court Justice Ann-Christine Lindeblad (Deputy Chairman), Company Director Erik Einerth, Company Director Joakim Strid, Company Director Anders Oscarsson, Lawyer Wilhelm Lüning, Company Director Jack Junel, MBA Ragnar Boman, MBA Carl Johan Högbom, Lawyer Patrik Marcelius, Authorized Public Accountant Magnus Svensson Henryson and Authorized Public Accountant Svante Forsberg.
About Nasdaq
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