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SFO agrees Deferred Prosecution Agreement with Tesco

10 April, 2017 | News Releases

Following today’s Regulatory News Service announcement by Tesco Plc, the SFO confirms that it has entered into a Deferred Prosecution Agreement (DPA) with Tesco Stores Limited.

This DPA only relates to the potential criminal liability of Tesco Stores Limited and does not address whether liability of any sort attaches to Tesco Plc or any current or former employee or agent of Tesco Plc or Tesco Stores Ltd.

Reporting restrictions have been imposed and the SFO will make no further comment until those restrictions have been lifted.

Notes to Editors:

  1. The strict liability rule under the Contempt of Court Act 1981 applies to a prosecution of three individuals in relation to the conduct of Tesco Stores Limited’s business. Their trial will take place on 4 September 2017 at Southwark Crown Court.
  2. A contempt of court order has been made in respect of the reporting of the DPA. It provides as follows, IT IS ORDERED THAT: There shall be postponed until the conclusion of the trial of Carl Rogberg, Chris Bush and John Scouler or further order the publication of:
    1. the deferred prosecution agreement between Tesco Stores Ltd and the Serious Fraud Office approved by the court (“the DPA”);
    2. the statement of facts in support of the DPA;
    3. any report of the hearing pursuant to para. 8(1) of Schedule 17 of the Crime and Courts Act 2013; and
    4. the reasons for the decisions of the court under paras. 7(1) and 8(1) of the said Schedule

save only for the facts that:

  1. Tesco Stores Limited has entered into a DPA with the Serious Fraud Office as described in the RNS announcement made by Tesco plc on 28 March 2017;
  2. subject to compliance with the terms of the DPA, the investigation by the SFO into Tesco plc and Tesco Stores Ltd is concluded;
  3. the DPA only relates to the potential criminal liability of Tesco Stores Limited and does not address whether liability of any sort attaches to Tesco plc or any employee, agent, former employee or former agent of Tesco plc or Tesco Stores Ltd;
  4. Tesco plc will take a total exceptional charge of £235m in respect of the DPA of £129m, the expected costs of an FCA compensation scheme of £85m, and related costs.  This has been recorded in the financial statements in the year to 25 February 2017 of Tesco plc as an adjusting post balance sheet event.