Tesco PLC reached agreement in principle to settle a class action commenced in New York on behalf of the holders of its ADRs

CHESHUNT, England, 2015-11-26 — /EPR Retail News/ — Tesco PLC today announces that it has reached agreement in principle to settle a class action commenced in New York on behalf of the holders of the Company’s American Depositary Receipts (“ADRs”) (ADRs represent approximately two per cent of the total issued ordinary shares of the Company).

The class action was against the Company and certain of its former directors and alleged breaches of certain U.S. federal securities laws in connection with the overstatement of commercial income which was announced in September 2014.  The settlement agreement, which is subject to confirmation by a federal court in New York, provides for Tesco to pay $12 million to settle the class action with no admission of liability.  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.

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SOURCE: Tesco PLC