(Image
via
Getty)
New
allegations
in
an
ongoing
case
against
Swedish
telecommunication
giant
Ericsson
suggest
Simpson
Thacher
attorneys
were
aware
that
the
multinational
company
made
illegal
payments
to
terrorist
organizations.
The
suit,
filed
in
August
on
behalf
of
American
service
members
and
civilians
killed
or
wounded
by
al-Qaeda,
al-Qaeda-in-Iraq,
and
Islamic
State,
claims
that
Ericsson
agreed
to
pay
protection
money
to
these
groups
in
order
to
maintain
its
business
prospects
in
Iraq
and
Afghanistan,
despite
knowing
that
these
payments
funded
terrorist
activity.
Beyond
the
payments,
Ericsson
also
allegedly
facilitated
the
“direct
transfer
of
high-tech,
U.S.
military-grade,
U.S.
origin
communications
technologies”
to
terrorist
groups.
And
this
all
happened
over
the
course
of
at
least
15
years.
Earlier
this
week,
the
plaintiffs
through
their
attorneys
at
Sparacino
PLLC
filed
a
779-page
Amended
Complaint
alleging
that
Simpson
Thacher
was
aware
of
these
practices
by
2014
—
at
least
five
years
before
they
ceased
—
and
helped
the
company
as
a
“reputation
launderer”
by
virtue
of
its
standing
in
the
legal
community.
There’s
a
bit
of
alphabet-soup
with
different
Ericsson
entities
allegedly
acquiring
knowledge
of
the
scheme
at
different
times,
but
there
are
paragraphs
like
this
one:
On
information
and
belief,
Ericsson
AB
also
directly
retained
Simpson
Thacher
and/or
Ericsson
AB
assented
to
the
retention
of
Simpson
Thacher
on
Ericsson
AB’s
behalf
by
LM
Ericsson.
When
Ericsson
AB
did
so,
Ericsson
AB
had
the
specific
intent
that
Simpson
Thacher
deflect
any
United
States
government
scrutiny
concerning
Ericsson’s
illicit
payments
in
Iraq,
including
those
relating
to
al-Qaeda,
al-Qaeda-in-Iraq,
and
Islamic
State.
Infra
at
Part
V.
Ericsson
AB
and
Simpson
Thacher
agreed
as
to
that
course
of
conduct,
and
thereafter
successfully
obstructed
the
United
States
government’s
counterterrorism
operations.
This
conduct
was
a
but-for
cause
of
Defendants’
protection
payments
in
Iraq
by
no
later
than
2014,
when
Ericsson
AB,
on
information
and
belief,
retained
Simpson
Thacher
alongside
LM
Ericsson
or,
alternatively,
assented
to
LM
Ericsson’s
retention
of
Simpson
Thacher
on
behalf
of
Ericsson
AB.
Ericsson
AB
and
Simpson
Thacher
were
aware
of
Defendants’
payments
to
al-Qaeda,
al-
Qaeda-in-Iraq,
and
Islamic
State,
Ericsson
AB
and
Simpson
Thacher
both
knew
such
payments
were
illegal
and
foreseeably
aided
acts
of
terrorism
against
Americans,
and
both
Ericsson
AB
and
Simpson
Thacher
both
affirmatively
chose
to
conceal
such
information
from
the
United
States
government
even
though
Ericsson
AB
and
Simpson
Thacher
both
had
an
affirmative
duty
of
disclosure
given
Ericsson
AB’s
assertion
that
Ericsson
was
fully
cooperating
with
the
then-
existing
U.S.
government
investigation
of
Ericsson.
The
“U.S.
government
investigation”
resulted
in
the
Department
of
Justice
entering
a
deferred
prosecution
agreement
with
Ericsson
and
the
company
agreeing
to
pay
$1
billion
for
multiple
FCPA
violations
involving
bribes
to
officials
around
the
world,
but
pointedly
not
the
terrorist
organizations
involved
here.
Simpson
conducted
the
internal
investigation
in
conjunction
with
the
DOJ
inquiry
and
finalized
its
report
after
the
DPA
was
signed.
That
report
leaked
to
reporters
in
February
and
it
kinda
sorta
mentioned
the
whole
“paying
off
terrorists”
stuff.
Though,
as
the
Amended
Complaint
puts
it,
“Many
of
the
‘findings’
were
written
in
the
passive
voice
to
obfuscate
the
culpability
of
particular
Ericsson
personnel.
Other
findings
were
obvious
examples
of
Simpson
Thacher
pulling
punches.”
As
one
might
imagine,
the
DOJ
had
some
additional
concerns
at
that
point.
DOJ
has
publicly
taken
the
position
that
LM
Ericsson
breached
its
ongoing
obligations
to
the
U.S.
government
under
the
DPA
by
having
concealed
the
existence
of
that
investigation
and
the
findings
set
forth
therein
(representing
the
second
time
in
roughly
two
years
DOJ
has
accused
LM
Ericsson
of
breaching
the
DPA).
That’s
all…
well,
that’s
all
not
good.
If
the
firm
learned
of
the
conduct
after
the
fact
and
helped
Ericsson
keep
it
from
the
government
it’s
bad
and
if
the
firm
had
any
knowledge
of
these
payments
before
they
stopped
it’s
way,
way
worse.
We
reached
out
to
Simpson
for
comment
yesterday
but
have
not
heard
back.
We’ll
update
this
story
if
we
do.
You
can
read
the
full
Amended
Complaint
on
the
next
page.
Joe
Patrice is
a
senior
editor
at
Above
the
Law
and
co-host
of
Thinking
Like
A
Lawyer.
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