Guatemalan labor court orders massive severance claim against Millicom, raising US investor concerns

In Guatemala City, a labor tribunal ruled that a former Tigo Guatemala executive should receive a severance based on an "average monthly salary" of $4.47 million, a sum that would rank him among the highest-paid athletes worldwide. The decision targets Millicom International Cellular, the Nasdaq-listed parent of Tigo, whose shares are held by U.S. mutual funds and pension systems. While Millicom’s own calculations suggest a realistic liability of roughly $5 million, the court has already begun enforcing two judgments, potentially forcing larger payments before a constitutional review.

The dispute arises after a past bribery scheme involving a minority shareholder was resolved in November 2025 through a deferred prosecution agreement and a $118 million settlement with the U.S. Justice Department. Critics argue that former executives tied to that scheme are now attempting to extract further wealth from the company, raising concerns about Guatemala’s judicial reliability and its impact on U.S. investment and security cooperation.