Nokia Reports Compliance Issues from Alcatel-Lucent while Share Price Declines

Nokia (NYSE:NOK) shares dropped over 8 percent after Alcatel-Lucent, a company that Nokia purchased in 2016 for 15.6 billion euros reported compliance issues that could lead to fines. Finnish company Nokia began an internal investigation and reported details to regulators.

As quoted in the press release:

“To ensure complete compliance we are now scrutinizing certain transactions in the former Alcatel-Lucent business and although this investigation is in a relatively early stage, out of an abundance of caution and in the spirit of transparency, Nokia has contacted the relevant regulatory authorities regarding this review,” Nokia said in an emailed statement to Reuters.

Nokia said it had voluntarily reported the matter to the relevant regulators, and it was cooperating with the authorities to resolve the matter.

“The resolution of this matter could result in potential criminal or civil penalties, including the possibility of monetary fines, which could have a material adverse effect on our business, brand, reputation or financial position,” it said in a filing to the U.S. Securities and Exchange Commission.

Click here to read the full press release.