Ericsson Faces Shareholder Suit Over Stock Drop

Law360 (October 30, 2007, 12:00 AM EDT) -- Investors filed a proposed class action complaint against Swedish telecom equipment giant Ericsson LM Telephone Co. on Monday, claiming the company issued misleading statements over its business and financial results.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, alleges that between Sept. 11 and Oct 15, 2007, Ericsson issued “materially false and misleading statements regarding the company's business and financial results.”

As a result of overly optimistic and false statements, Ericsson's American Depositary Shares (ADSs) traded at artificially inflated...
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