 Ahold's accounting problems shook European stock markets |
Dutch retailer Ahold has reached a deal to settle a class action suit in the US after it inflated earnings by more than 1bn euros ($1.2bn; �684m). The firm, the world's fourth-biggest food retail and foodservice group by sales, said the deal would see it pay $1.1bn to eligible shareholders.
It means there will be a charge in its third-quarter figures of 585m euros after tax, Ahold added.
Ahold hit the headlines in 2003 after queries over US subsidiary Foodservice.
Payment per share
Three former Ahold top executives last year settled fraud charges brought by US regulator the Securities and Exchange Commission.
Ahold had previously admitted that it fraudulently inflated promotional allowances at Foodservice, improperly consolidated joint ventures and also committed other accounting errors and irregularities.
The settlement will cover all common shares bought from 30 July, 1999 to 23 February, 2003, providing compensation of between $1 and $1.30 per qualifying share.
Ahold said if payments went to plan, cash would be distributed by an administrator in 2007.
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