Ericsson faces lawsuit over profit warning

Swedish telecoms equipment maker Ericsson has been threatened with a US lawsuit for not issuing a profit warning earlier, ahead of its unexpected fall in earnings in the third quarter.

American law firm Coughlin Stoia claims Ericsson gave misleading information to shareholders at a strategy day held on 11th September. The firm says it represents those who bought shares between 11th Septmber and 15th October, Dagens Industri reports.

The firm claims that the company and “certain executives” knew by then or negligently failed to notice that the company was heading for a much worse set of results than previously expected.

The affected shareholders should be compensated for their losses, the lawyers claim.

Shareholders have two months to sign up to participate in the lawsuit and benefit from any compensation order.