The settlement agreement with holders of Tesco‘s American Depositary Receipts (ADRs), equivalent to about 2% of the company’s total sharebase, is subject to confirmation by a federal court in New York.
The class action, which was against Tesco and several of its former directors, alleged breaches of certain US federal securities laws with respect to the overstatement of commercial income that was announced in September last year.
Go deeper with GlobalData
The Guardian reported that the company’s former directors Philip Clarke and Laurie McIlwee collected payoffs of £1.2m and £970,880 respectively for loss of office.
However, Tesco unveiled provisions to recover their bonuses if either of them was identified to have been involved in the illegal activity..
Tesco replaced Clarke with Dave Lewis in July last yearafter a series of profit warnings.
The UK’s Serious Fraud Office is questioning Clarke and initiated criminal proceedings into the accounting scam. .
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataTesco’s other claim was brought in Ohio by the remaining ADR holders.
