Ahold settlement hits profits
Settlement of litigation following accounting scandal hits Ahold profits
Ahold, the dutch-based global retailer that owns the Stop & Shop and
Giant supermarket chains in the United States delivered a third-quarter loss of
239m euros (£163.6m) earlier today.
The group’s profits took the brunt of a €585m charge for a settlement with
shareholders who lost money because of Ahold’s 2003 accounting scandal.
A day earlier Ahold said it would pay $1.1bn (£639m) to settle civil suits
which arose when the group artificially boosted profits between 1999 and 2002.
‘The settlement of the securities class action allows Ahold to move forward
and focus intensely on its businesses and future strategy,’ said Ahold president
and chief executive Anders Moberg.
If the settlement charge been excluded, Ahold’s Q3 net income would have come
in €346m higher.