Guilty pleas and regulatory settlements often trigger follow-on private litigation. Courts have often taken a broad interpretation of what can constitute securities fraud, allowing these cases to move forward through the motion to dismiss stage, costing companies dearly in both money and reputational harm. The breach by Telefonaktiebolaget LM Ericsson of its 2019 deferred prosecution agreement lead almost immediately to one such securities fraud case, but the company was able to nip this particular suit in the bud early. In May 2023, the District Court dismissed the action with prejudice. On September 3, 2024, the U.S. Court of Appeals for the Second Circuit affirmed the District Court’s decision. This article discusses the circumstances giving rise to the action, plaintiffs’ allegations and reasoning behind the dismissal. See “Lessons From the Dismissal of the Embraer Securities Fraud Class Action” (May 2, 2018).