Anyone who bought shares in Tesco (TSCO) during a certain part of summer 2014 will be able to get some money back as a compensation payment.
The supermarket will pay 24.5p per share and interest (covering the period in the interim) based on 4% annual rate to retail bondholders who invested between 29 August and 19 September 2014.
Eligible investors can now apply for compensation as the scheme, run by KPMG, went live this morning (23 August 2017). You will have six months to make a claim with the deadline being 22 February 2018.
KMPG will shortly write to all parties identified as eligible claimants.
The accountant says the most efficient way of lodging a claim is to make an application online.
The alternative is to request a written claims pack which can be completed and return by post. All information can be found here.
WHY IS TESCO PAYING BACK MONEY?
Tesco has agreed a settlement with the Serious Fraud Office (SFO) over accounting malpractice where it overstated profits.
The Financial Conduct Authority (FCA) has used its powers to force Tesco to deliver £85m worth of compensation to shareholders.
The market abuse identified by the FCA relates to a trading update on 29 August 2014 which overstated profit. This was followed by a corrective statement on 22 September 2014.
HOW MUCH WILL IT COST THE COMPANY?
In total Tesco is taking an exceptional charge of £235m in respect of the SFO fine, FCA compensation scheme and related costs.
