- Deal agreed in principle with US investors
- Tesco admits no liability
- One US legal case outstanding
Tesco is to pay $12m (£8m) to US investors to end legal action following the accounting scandal that rocked the supermarket giant last year.
Tesco said agreement has been reached in principle to settle a class action in New York by holders of its American depositary receipts (ADRs), which represent about 2% of its total issued ordinary shares.
The grocer did not admit liability as part of the settlement.
Tesco said: “The class action was against the company and certain of its former directors and alleged breaches of certain US federal securities laws in connection with the overstatement of commercial income, which was announced in September 2014.
“This agreement, if confirmed, will settle one of two claims before US courts arising out of the commercial income overstatement. The other claim is brought in Ohio by the remaining holders of ADRs equivalent to less than 0.2% of the total issued ordinary shares of the company.”
The eruption of the accounting controversy was another big headache for Tesco chef executive Dave Lewis, who had been parachuted into the role early to turnaround the embattled grocer’s fortunes.
The scandal led to the exit of several Tesco executives and prompted an investigation by the Serious Fraud Office.