A class action lawsuit has been filed against the world's largest telecommunications equipment company for allegedly misleading the market after issuing a profit warning that wiped out a large share of its market value in one day. The lawsuit was filed in US District Court in New York on behalf of all shareholders who held or purchased shares between September 11, 2007 and October 15, 2007.
The lawsuit claims Ericsson and its senior managers knew the company earnings were bad prior to informing the market and before it held an investors conference. It alleges Ericsson, its chief executive, Carl Henric Svanberg, and former chief financial officer, Karl-Henrik Sundström, issued materially false and misleading statements regarding the company's business and financial results.
