Tesco faces £129m fine for overstating profits

/ 28 March 2017
UK supermarket giant Tesco will be forced to pay £129m to avoid being prosecuted by the Serious Fraud Office (SFO).
The UK’s biggest supermarket entered a Deferred Prosecution Agreement with the SFO, on top of the fine they must also pay £85m in compensation to investors.
The compensation is for those who bought shares or bonds between 29 August and 19 September in 2014, as it is believed those investors would have been given misleading information in a trading statement.
The overstatement of profits in that statement has been measured at £326m, this meant overall the Big Four made a £6.4bn loss in 2015, one of the largest in corporate history.
Dave Lewis, Tesco chief executive, said the firm would do everything it could to “restore trust” after seeing the brand suffer from the accounting scandal.