Belfast Telegraph

Tesco pays £8m in lawsuit after accounting scandal

By Roger Baird

Tesco has said it will pay $12m (£8m) to settle a class-action lawsuit stemming from an accounting scandal that rocked the supermarket last year.

Britain's biggest retailer does not admit liability but will make the payment to American shareholders - owners of American depositary receipts - to settle the claim, subject to confirmation by a federal court in New York.

These shareholders hold about 2% of Tesco's shares.

The retailer is also dealing with a second claim with US shareholders in Ohio, who hold less than 0.2% of its shares, which it is yet to settle.

The scandal surfaced last September when new chief executive Dave Lewis said previous payments from suppliers had been moved around to different periods in its profit-and-loss figures, going back at least as far as 2012/13.

This bumped up first-half profits last year by £250m, which on closer inspection a month later was raised to £263m.

The affair led to the departure of a number of senior managers and an ongoing investigation by the Serious Fraud Office.

Belfast Telegraph