Tesco has been fined £129m by the Serious Fraud Office over false accounting practices between February and September 2014.
The false accounting resulted in Tesco overstating its profit forecast on 29 August 2014 by about £325m. It has also agreed with the Financial Conduct Authority (FAC) to pay £85m on compensating investors affected by the profit statement.
A Deferred Prosecution Agreement (DPA) will come into effect if approved by the Crown Court on 10 April 2017. The DPA is a voluntary agreement under which Tesco Stores Limited will not be prosecuted provided it fulfils certain requirements, including paying the financial penalty of £129m.
Dave Lewis, Tesco Group chief executive, said: “Over the last two and a half years, we have fully cooperated with this investigation into historic accounting practices, while at the same time fundamentally transforming our business.
“We sincerely regret the issues which occurred in 2014 and we are committed to doing everything we can to continue to restore trust in our business and brand.”