Tesco has announced it would reimburse around 10,000 shareholders who lost money during the 2014 accounting scandal.
The Financial Conduct Authority (FCA) has ordered the retailer to pay compensation to shareholders who purchased bonds during the period between August 26 and September 19 in 2014, when the retailer had overstated its profits by £326 million.
Claimants will be awarded 24.5p per share alongside interest of four per cent. Claims will be handled by KPMG who have said they would aim process each one within 35 days.
According to Hargreaves Lansdown, the average claim will total around £400, coming from an £85 million redress scheme.
“Tesco needs to repair the reputational damage from the accounting scandal and will hope that this compensation scheme will help draw a line under the matter,” Hargreaves Lansdown‘s Danny Cox said.
“The claims process is a little clunky but important to follow as it‘s a simple equation: no claim, no compensation.”
Tesco‘s former UK managing director Chris Bush, ex-finance director Carl Rogberg and former food commercial director John Scouler have been accused by the Serious Fraud Office (SFO) of committing fraud by abuse of power and fraud by false accounting.