The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) who purchased shares between April 8, 2013 and July 17, 2017. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the ERIC lawsuit alleges that (1) Ericsson prematurely recognized revenues and improperly delayed the recognition of costs related to services contracts; and (2) as a result of the foregoing, Ericsson materially overstated its revenues, margins, and profits during the Class Period. On July 18, 2017, Ericsson reported disappointing results for the second quarter ended June 30, 2017 and announced that it had identified 42 contracts to be transformed, exited or renegotiated. On this news, shares of Ericsson fell from a close of $7.28 per share on July 17, 2017, to a close of $6.07 per share on July 18, 2017.
Shareholders have until June 5, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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