Ericsson changes chief legal officer amid tussle with DoJ

2 minute read

A general view of an office of Swedish telecom giant Ericsson is seen in Lund, Sweden. REUTERS/Stig-Ake Jonsson/TT News Agency/File Photo

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STOCKHOLM, March 16 (Reuters) - Swedish telecoms equipment maker Ericsson (ERICb.ST) on Wednesday named Scott Dresser as its chief legal officer, replacing Xavier Dedullen, who will leave the role next week.

Ericsson has been mired in a scandal in recent weeks over potential payments to the Islamic State in Iraq. The Department of Justice (DoJ) in the United States has also said it is in breach of a 2019 deferred prosecution agreement for failing to fully disclose details of its operations in Iraq. read more

Dedullen, who will remain with Ericsson for a transition period, joined the company in 2018 and was instrumental in agreeing a settlement with the DoJ over probes into corruption. Ericsson paid over $1 billion in fines.

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Since signing the deal, the DoJ has informed Ericsson that is has breached the agreement twice.

The recent breaches have left some in the management unhappy with how important legal matters are being handled and a change was needed, according to a person familiar with the matter.

Dresser, who will take over the new role from March 21 and be based in the U.S., has had a legal career spanning more than three decades and was Veon's general counsel for the last eight years.

"Scott joins us at a critical time and will play a key role ... We demand that our business be conducted responsibly and with integrity across its value chain," CEO Börje Ekholm said in a statement.

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Reporting by Supantha Mukherjee in Stockholm; Editing by Simon Johnson

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