November 28, 2007
Labaton Sucharow LLP Files Class Action Lawsuit Against Ericsson LM Telephone Co. Extending The Class Period
NEW YORK (November 28, 2007) – Labaton Sucharow LLP filed a class action lawsuit on November 28, 2007 in the United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired the securities of Ericsson LM Telephone Co. ("Ericsson" or the "Company") (NASDAQ:ERIC and SS:ERICA and SS:ERICB) between February 2, 2007 and November 20, 2007, inclusive, (the "Class Period"). The lawsuit was filed against Ericsson, its CEO Carl-Henrik Svanberg, and its former CFO Karl-Henrik Sundstrom ("Defendants").
If you are a member of this class you can view a copy of the complaint online at http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm
The complaint alleges Ericsson and certain of its officers and directors violated the Securities Exchange Act of 1934. Ericsson is a Sweden-based company that offers a portfolio of telecommunication and data communication systems and services covering a range of technologies.
According to the complaint, during the Class Period, Defendants issued materially false and misleading statements regarding the Company's business and financial results. The complaint alleges that Defendants knew or recklessly disregarded that: (i) the Company was experiencing declining sales in its networks due to lower sales of expansions and upgrades of mobile networks; (ii) sales in Western Europe were declining due to operator consolidation in several markets; and (iii) as a result, Defendants lacked a reasonable basis for their positive statements about the Company's business, such as the repeated reassurances of continued strong earnings growth in 2007.
On October 16, 2007, before the market opened, Ericsson issued a release entitled "Lower than expected results for Ericsson in third quarter 2007." That same day, after these results were issued, Ericsson's stock collapsed to close at $31.33 per share, a decline of 24%, on volume of 42.7 million shares.
On November 20, 2007, Ericsson finally acknowledged that it had experienced, and would continue to experience, lower customer demand across product lines and regions. The Company also again lowered sales projections for the rest of 2007 and 2008. The Company's shares declined an additional 12% after this disclosure.
Labaton Sucharow LLP, with offices in New York, New York and Wilmington, Delaware, is one of the country’s premier law firms representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The Firm has been a champion of investor and consumer rights for over 45 years, seeking recovery of current losses and necessary governance reforms to protect investors and consumers. Labaton Sucharow has been recognized for its excellence by the courts and its peers. More information about Labaton Sucharow is available at www.labaton.com.