Ericsson LM Telephone Company ("Ericsson" or the Company) is a Sweden-based company that offers a portfolio of telecommunication and data communication systems and services covering a range of technologies.
The original Complaint charges Ericsson and certain of its officers and directors with violations of the Exchange Act. According to the Complaint, during the Class Period, Defendants issued materially false and misleading statements regarding the Company’s business and financial results. The Complaint alleges that Defendants knew or recklessly disregarded that: (i) the Company was experiencing declining sales in its networks due to lower sales of expansions and upgrades of mobile networks; (ii) sales in Western Europe were declining due to operator consolidation in several markets; and (iii) as a result, Defendants lacked a reasonable basis for their positives statements about the Company’s business.
The Complaint further alleges that on October 16, 2007, before the market opened, Ericsson issued a release entitled “Lower than expected result for Ericsson in third quarter 2007”. That same day, after these results were issued, Ericsson’s stock collapsed to close at $31.33 per share, a decline of 24%, on volume of 42.7 million shares.
On February 19, 2008, Judge Robert P. Patterson granted an order appointing lead Plaintiff and its selection of lead Counsel. Furthermore, the Plaintiff class had until April 15, 2008 to file an amended Complaint. On March 15, 2008, the Plaintiff filed a Consolidated Complaint for Violations of the Securities Exchange Act of 1934.
On April 21, 2008, an order denying motion to strike the reply brief of an individual was entered.
On June 13, 2008, a motion to dismiss was filed by Telefonaktiebolaget LM Ericsson, Ericsson LM Telephone Co. and several individuals.
On January 09, 2009, a Notice of Appeal was filed with the United States Court of Appeals for the Second Circuit.
On October 30, 2009, a mandate of the United States Court of Appeals affirming the judgment of the District Court was issued.
