Tesco is paying $12 million to settle a US case over its £263 million accounting black hole
REUTERS/Nigel Roddis
Last September Tesco admitted it had misstated profits by £263 million, an admission that sent the share price into freefall. The management team has since been replaced, but the company is still dealing with the fallout.
US law firm Scott+Scott filed a claim against Tesco in the US on behalf of American investors over the collapse in share price.
The supermarket said in Thursday's statement that the settlement includes "no admission of liability."
The case was bought by in New York on behalf of the holders of the Company's American Depositary Receipts (ADR), an instrument that lets US investors back the company. The New York ADR holders make up approximately 2% of Tesco's investor base. A separate case involving Ohio ADR holders, worth 0.2% of Tesco, is still ongoing.
Tesco could still face a similar case in Europe and is the subject of an ongoing Serious Fraud Office investigation and accounting probe.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- Unemployment among Indian youth is high, but it is transient: RBI MPC member
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market