FCA orders Tesco to pay compensation after 'misleading' investors

In addition to £129m fine

Carmen Reichman
clock • 3 min read

The Financial Conduct Authority (FCA) has ordered Tesco to pay investors redress in the region of £85m after it found the company had engaged in market abuse.

The regulator said a trading update published on 29 August 2014 by Tesco had given a false or misleading impression about the value of publicly traded Tesco shares and bonds. Tesco has agreed to pay compensation to investors who purchased the company's shares and bonds on or after 29 August 2014 and who still held those securities when the statement was corrected on 22 September 2014. In addition, Tesco Stores Limited has entered into a deferred prosecution agreement (‘DPA') with the Serious Fraud Office (‘SFO') relating to false accounting, pursuant to which it will pay a fine of £12...

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