October 9, 2009 / 9:22 AM / 10 years ago

U.S. court backs Ericsson over 2007 profit warning

STOCKHOLM, Oct 9 (Reuters) - Ericsson (ERICb.ST) said on Friday a U.S. court had thrown out an appeal in a case brought by investors who claimed the telecom equipment maker had misled them prior to issuing a profit warning in 2007.

The appeals court on Thursday upheld a judgement made by a lower court in December 2008 that Ericsson had not mislead investors by giving an upbeat presentation to analysts and shareholders just before warning on third-quarter 2007 profits.

Ericsson shares lost nearly a quarter of their value on Oct. 16, 2007 after the profit warning.

The plaintiffs argued in particular that Ericsson Chief Executive Carl-Henric Svanberg had “conveyed the impression that third-quarter results would be only slightly down from the second-quarter results when (he) knew that the results would be disastrously worse”, the ruling said.

“When the defendants’ statements are considered in the light of analysts’ questions and are taken in the context of the full discussion, we find that the statements were not misleading,” it said.

Ericsson spokeswoman Ase Lindskog said the case was the only one outstanding regarding the 2007 profit warning.

“It is always nice when one can put this kind of thing behind you and say we were right all along,” Lindskog said.

Ericsson shares were up 1.3 perecnt at 70.80 crowns at 0902 GMT, outperforming the wider market .OMXS30. (Editing by David Holmes)

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