By Tapan Panchal

LONDON--Retailer Tesco PLC (TSCO.LN) said Thursday that it has reached a $12 million settlement agreement for a U.S. lawsuit relating to an alleged overstatement of commercial income.

The supermarket chain has reached agreement in principle to settle a class action commenced in New York on behalf of the holders of the company's American depositary receipts, which represent around 2% of the total issued ordinary share capital.

The lawsuit, which was against the company and certain former directors, alleged breaches of certain U.S. federal securities laws in connection with the overstatement of commercial income announced in September 2014.

The agreement, which is subject to confirmation by a federal court in New York, provides for Tesco to settle the class action with no admission of liability.

If confirmed, the agreement will settle one of two claims arising out of the income overstatement. The second claim is brought in Ohio by the remaining holders of American depositary receipts.

-Write to Tapan Panchal at tapan.panchal@wsj.com

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(END) Dow Jones Newswires

November 26, 2015 02:32 ET (07:32 GMT)

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