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The Wall Street Journal reports that Tesco "has reached agreement in principle to pay $12 million to settle a class-action lawsuit in New York over an accounting scandal that tarnished the retailer’s reputation.

"The lawsuit against Tesco and some of its former directors was launched on behalf of the holders of the No. 1 U.K. grocery chain’s American depositary receipts, about 2% of its total shareholder base."

The lawsuit - one of two filed against Tesco in the US, and the only one settled to this point - essentially argued that the company defrauded its shareholders when it under-reported costs and over-reported revenues. While Tesco is writing a $12 million check, as part of the settlement it is not admitting any liability.
KC's View:
Nothing says "we aren't liable" like a $12 million check.

The UK's Serious Fraud Office is said to be close to the point where it will issue a report about Tesco's misdeeds. I suspect the second US lawsuit will get settled before that report becomes public ... and I hope that when the report is issued, it deals not just with the company's actions under former CEO Philip Clarke, but also the culture that was created under his predecessor, Sir Terry Leahy.