Tesco has agreed to pay $12m to settle a US shareholder lawsuit claiming that accounting irregularities inflated the share price of Britain's largest retailer.
The all-cash settlement was disclosed in filings yesterday in the US District Court in Manhattan, and requires court approval.
Tesco denied wrongdoing in agreeing to settle, court papers show.
Tesco was sued after revealing in September 2014 that it had overstated first-half profit by £250m because it incorrectly booked payments from suppliers.
That led to the price of Tesco's American depositary shares falling 15% on the next trading day. Tesco later raised the estimated overstatement to £263m.
The scandal led to the departure of several top executives, probes by Britain's Serious Fraud Office and other regulators, and the replacement of Tesco's longtime auditor.
The US settlement covers investors led by Stephen Klug, and who sought class-action status on behalf of those who acquired Tesco's American depositary shares and "F-shares" between April 18, 2012 and September 22, 2014, court papers show.
The lawsuit claimed that Tesco and top executives misled investors into believing the company was performing well, when it was instead reporting profit incorrectly, taking too long to recognise costs, and overstating inventory.
