Tesco to pay £129m fine plus compensation to settle false accounting charges
Britian’s biggest retailer has struck a deal with the British serious fraud office to avoid a criminal conviction relating to false accounting in 2014
London — Britain’s biggest retailer Tesco has agreed to pay a £129m fine plus compensation to settle an investigation over a 2014 accounting fraud that sparked the biggest crisis in the company’s near 100-year history. Tesco, which has been rebuilding itself since the scandal and a price war that hammered the whole sector, said on Tuesday that it would take a one-off charge of £235m in its 2016-17 results, due on April 12. The supermarket group has struck a so-called deferred prosecution agreement (DPA) with Britain’s serious fraud office (SFO), enabling it to avoid a criminal conviction, provided it meets certain conditions and pays the financial penalty. It will also pay compensation to certain investors of about £85m. "We sincerely regret the issues which occurred in 2014 and we are committed to doing everything we can to continue to restore trust in our business and brand," said CEO Dave Lewis. Shares in the group were flat in early trading. The DPA relates to false accounting b...
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