Why Ericsson Stock Tanked 14% Today

Shares of Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC), or simply Ericsson, were down 14% today as of 12:25 p.m. ET. The Swedish networking and telecom equipment company said it may have inadvertently funded the Islamic State (ISIS) in Iraq in 2019. This announcement comes about a week after Ericsson said it had received inquiries from media outlets regarding its sales in Iraq, and that it would be reviewing a previous internal investigation it conducted in 2019 and would compare findings with that presented to it from external sources.

Image source: Getty Images.

Turns out that upon review, Ericsson's conduct in Iraq in 2019 might have inadvertently funded ISIS. According to the company's press release on Tuesday, it reads in part:

Source Fool.com