Legal

Tesco to settle payout over 2014 accounting scandal

Sky News reported that the group is likely to pay more than £100m to a group of shareholders, which would be additional to a series of earlier settlements

Tesco is reportedly close to agreeing on a “major” settlement between the group and its shareholders over a 2014 accounting scandal that rocked the supermarket giant. 

According to Sky News, the group could announce an agreement to a “substantial” payout alongside its half-year results that are set to be published tomorrow (6 October). 

Sky reported that the group is likely to pay more than £100m to a group of shareholders, which would be additional to a series of earlier settlements that are believed to have cost “several hundred million pounds”.

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Law firm Stewarts Law has led the class action claims against Tesco, involving as many as 60 of its investors. Sources told Sky that they understood that the “most prominent” party to the settlement would be Norges Bank, a Norwegian sovereign wealth fund.

Last year, the Financial Reporting Council (FRC) announced the closure of a five-year investigation into the accountants working within the grocer.

The investigation again related to the £250m overstatement of profits Tesco reported in 2014, and the UK watchdog said the matter was now closed “without service of a Formal Complaint”.

Tesco has been contacted for comment

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