Mar 28, 2017
Tesco UK arm to pay £129m fine over accounts scandal
Tesco's UK arm is set to pay a £129m penalty to avoid prosecution for a 2014 accounting scandal, while handing millions more to investors who bought shares in the weeks after the flawed numbers were published. The supermarket group said its subsidiary Tesco Stores planned to enter a "Deferred prosecution agreement" with the Serious Fraud Office, paying £129m to avoid prosecution for false accounting in 2014. The draft agreement concerns only the potential criminal liability of Tesco Stores, the supermarket's UK subsidiary, and does not address whether liability of any sort attaches to the parent company or any of the group's employees or agents. In addition to regulatory scrutiny, Tesco is fighting off two civil lawsuits from investors who say they lost money by relying on flawed financial statements issued by the supermarket group. Analysts say the switch has helped Tesco offer consistently lower prices, while eliminating many complex accounting protocols that were prone to error or abuse.
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