Tesco hands 10,000 shareholders compensation payouts over its 2014 accounting scandal

 
Helen Cahill
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PwC was cleared of any wrongdoing over the black hole that emerged in Tesco's accounts (Source: Getty)

Tesco today announced it is handing compensation payouts to around 10,000 shareholders over its 2014 accounting scandal.

The UK's biggest supermarket is awarding claimants 24.5p per share plus an interest of four per cent. Individual payouts are expected to average £400, according to analysis by Hargreaves Lansdown.

Read more: Tesco auditor PwC cleared by regulators after misconduct probe

KPMG is acting as the administrator for the compensation scheme, and is setting up a claims website to manage requests from investors.

Danny Cox, chartered financial planner at Hargreaves Lansdown, said: “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. The claims process is a little clunky but important to follow as it’s a simple equation: no claim, no compensation."

At time of writing, Tesco's share price was down 0.71 per cent at 167p.

The Serious Fraud Office has charged three former Tesco employees over the accounting scandal, which saw the supermarket overstate its profits by £326m.

Tesco has been forced to payout compensation to shareholders by the Financial Conduct Authority (FCA). The FCA decided the supermarket should compensate those who bought Tesco shares and bonds between 26 August, when Tesco issued the misleading trading update, and 19 September 2014, shortly before the company informed the market of the false accounting.

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