Tesco : hands out £193m to settle 2014 accounting scandal
October 07, 2021 at 02:51 am EDT
Share
Tesco has handed out £193m to settle an accounting scandal from seven years ago, a larger figure than it received from the UK’s fraud watchdog.
The country’s largest supermarket confirmed that it had settled claims from investors with two law firms that had brought legal proceedings against it last September.
The investors include Allianz, Russell Investments and the Church of England pension fund, which sued Tesco over scandal which saw Tesco lose some £2bn from its valuation.
The supermarket revealed it had incorrectly booked supplier income by £250m, although the error reportedly grew to £326m.
Shareholders had therefore been seeking compensation for the drastic share price fall, claiming that their losses resulted from Tesco’s inaccurate reporting.
The Serious Fraud Office had fined the supermarket giant £129m, while three Tesco executives who were prosecuted by the watchdog were eventually acquitted in 2019.
City A.M. has contacted Tesco for comment.
The post Tesco hands out £193m to settle 2014 accounting scandal appeared first on CityAM.
Tesco PLC is the leading English distribution group. Net sales break down by activity as follows:
- distribution in the United Kingdom and Ireland (90.8%): food and non-food distribution (textile products, pharmaceuticals, computers, optics, household appliances, etc.) through 3,878 stores. The group also offers telephony services through Tesco Mobile (British no. 1). Tesco PLC also has an on-line purchasing site, Tesco.com;
- distribution in Central Europe (7.3%): operation, at the end of February 2023, of 541 stores located in Hungary (197), the Czech Republic (187; of which 124 franchised) and Slovakia (157; of which 10 franchised).
- financial services (1.9%; Tesco Bank): insurance, loans, savings, payment card issuance, etc.