DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

Tesco Agrees to Settle U.S. Class-Action Suit for $12 Million

By Steve Wynne-Jones
Share this article
Tesco Agrees to Settle U.S. Class-Action Suit for $12 Million

Tesco Plc has agreed to settle a U.S. class- action lawsuit brought by shareholders against the company related to last year’s accounting scandal.

Under the agreement, Tesco will pay $12 million but make no admission of liability, the company said in a statement Thursday. The settlement with holders of the company’s American depositary receipts is subject to confirmation by a federal court in New York.

For Tesco, the agreement ties up another loose end from a scandal which saw it place nine senior managers on leave, overhaul its executive pay structure and become the subject of a criminal investigation in the U.K.

An independent review found that through recognising income before it was received and deferring payments owed to suppliers, the company overstated its profits by 326 million pounds ($492.8 million)

The settlement agreement resolves one of two U.S. claims brought against the company. The other lawsuit was brought in Ohio by the remaining holders of the ADRs, representing less than 0.2 percent of Tesco’s shares.

News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here

ADVERTISEMENT
Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.