UK authorities fine Tesco in accounting scandal
Published:Thursday | March 30, 2017 | 12:00 AM
Britain's biggest supermarket chain, Tesco, has agreed to pay £214 million (US$269 million) in fines and shareholder compensation following an accounting scandal that inflated its profits in 2014.
The United Kingdom's Serious Fraud Office says Tesco Plc agreed to pay a fine of £129 million as part of a deferred compensation agreement.
In addition, the Financial Conduct Authority has found that Tesco committed "market abuse" when it overstated earnings on August 29, 2014. This inflated the price of Tesco shares and bonds and wasn't corrected until September 22, 2014. Tesco has agreed to pay an estimated £85 million to investors who bought its securities during the period.
The FCA says this is the first time it has required a listed company to pay compensation for market abuse.
- AP