Tesco has agreed to pay $12 million to settle a class action in New York against the company and some of its former directors over alleged overstatement of income.

The agreement, which is subject to confirmation by a federal court in New York, means Tesco settles with no admission of liability. 

If confirmed, it will resolve one of two claims before US courts arising out of the commercial income overstatement. 

The other claim is brought in Ohio by the remaining holders of American Depository Receipts equivalent to less than 0.2% of the total issued ordinary shares of the company.