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UK authorities fine Tesco in accounting scandal

Associated Press logo Associated Press 28/03/2017

LONDON — Britain's biggest supermarket chain, Tesco, has agreed to pay 214 million pounds ($269 million) in fines and shareholder compensation following an accounting scandal that inflated its profits in 2014.

The U.K.'s Serious Fraud Office says Tesco Plc agreed to pay a fine of 129 million pounds 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 Aug. 29, 2014. This inflated the price of Tesco shares and bonds and wasn't corrected until Sept. 22, 2014. Tesco has agreed to pay an estimated 85 million pounds 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.

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