NEW YORK, April 06, 2018 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP (“Labaton Sucharow”) announces that on April 5, 2018, it filed a securities class action lawsuit on behalf of its client Bristol County Retirement System (“Bristol County”) against Telefonaktiebolaget LM Ericsson (“Ericsson” or the “Company”) (NASDAQ:ERIC), and certain of its senior executives (collectively, “Defendants”).  The action, which is captioned Bristol Cty. Ret. Sys. v. Telefonaktiebolaget LM Ericsson, No. 18-cv-03021 (S.D.N.Y.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired Ericsson American Depositary Shares (“ADSs”) between April 8, 2013 and July 17, 2017, inclusive (the “Class Period”).

Ericsson provides computer networking hardware, software, and related services to telecommunications companies around the world.  Services provided by the Company include systems integration, network rollouts, and consulting projects that are often structured as multiyear contracts.  In 2015, revenue from services accounted for more than half of the Company’s total revenues.

During the Class Period, Ericsson claimed that its financial statements were prepared in accordance with International Financial Reporting Standards (“IFRS”).  However, Defendants violated IFRS by materially overstating service revenues and improperly delaying the recognition of at least $1 billion in expenses on its long-term service projects.

The Company’s improper accounting on the long-term service project contracts and/or the associated material impact on Ericsson’s financial performance was revealed through a series of disappointing financial results, culminating on July 18, 2017, when the Company revealed that it had identified 42 long-term service contracts to date with total annual sales of almost $1 billion that Ericsson would exit, renegotiate, or transform.  On this news, Ericsson ADS price fell $1.21 per share, or 16.62 percent, to close at $6.07 per share on July 18, 2017.

If you purchased or acquired Ericsson ADSs during the Class Period, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff.  Lead Plaintiff motion papers must be filed with the U.S. District Court for the Southern District of New York no later than June 5, 2018.  The Lead Plaintiff is a court-appointed representative for absent members of the Class.  You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action.  If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member.  You may retain counsel of your choice to represent you in this action.

If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at fmcconville@labaton.com. You can view a copy of the complaint online at, http://www.labaton.com/en/cases/Bristol-County-Retirement-System-v-Telefonaktiebolaget-LM-Ericsson.cfm.

Bristol County is represented by Labaton Sucharow, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $2 trillion.  Labaton Sucharow’s litigation reputation is built on its half-century of securities litigation experience, more than 60 full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants.  Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications.  Offices are located in New York, NY, Wilmington, DE, Washington, D.C., and Chicago, IL.  More information about Labaton Sucharow is available at www.labaton.com.

Source: Labaton Sucharow LLP