Tesco has agreed to settle a US shareholder lawsuit for £8m ($12m) after it was claimed the accounting scandal inflated its share price.
The troubled supermarket was sued by the holders of the company’s American depositary receipts (ADRs), which represent approximately 2% of the total issued ordinary shares of the firm.
The agreement is subject to approval by a federal court in New York and will settle the action with no admission of liability.
A statement from Tesco said: “This agreement, if confirmed, will settle one of two claims before US courts arising out of the commercial income overstatement. The other claim is brought in Ohio by the remaining holders of ADRs equivalent to less than 0.2% of the total issued ordinary shares of the company.”