Retailer reaches deferred prosecution agreement with Serious Fraud Office, and agrees compensation for shareholders over 2014 accounts which overstated profits by £250m.
Tesco is to pay a penalty of £129m after reaching a deferred prosecution agreement with the UK's Serious Fraud Office.
The agreement relates to false accounting committed by Tesco's subsidiary Tesco Stores from February to September 2014. The agreement is a voluntary arrangement and means Tesco will not face prosecution, subject to final judicial approval on 10 April.
In an unusual move, Tesco has also agreed compensation for shareholders of 24.5p per share plus interest, an arrangement reached with the Financial Conduct Authority after agreeing a finding of market abuse in relation to a company statement made on 29 August 2014.
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda