Judge Snuffs Securities Class Suit Against Ericsson

Law360, New York (December 11, 2008, 12:00 AM EST) -- A federal judge Wednesday tossed a consolidated securities class action against Ericsson LM Telephone Co., ruling that statements by the telecommunications manufacturer's executives, while overconfident or misconstrued, failed to amount to securities fraud.

Judge Robert P. Patterson of the U.S. District Court for the Southern District of New York dismissed the action, finding the consolidated complaint short on facts to support allegations that Ericsson deliberately misled investors with bright earnings forecasts.

The plaintiffs alleged that Ericsson CEO Carl-Henric Svanberg and Chief Financial Officer Henrick Sundstrom made...
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