US$1.1bn settlement bails out retailer
Dutch food giant Ahold has avoided criminal prosecution for a US$800 million (£426.2 million) accounting fraud at its US Foodservice subsidiary, following a US$1.1 billion (£586 million) out-of-court settlement with investors.

The announcement yesterday that neither Ahold nor its US Foodservice business will be prosecuted marks the end of a series of legal confrontations the retailer has faced since 2003.

Charges have also been brought against 16 former executives and suppliers of US Foodservice for their part in the scandal, which caused the retailer to overstate its earnings from 2000 to 2003.

The case, which first came to light in 2003, led to the departure of chief executive officer Cees van der Hoeven and chief financial officer Michiel Meurs. Both were given nine months suspended jail sentences in May.

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