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The overstatement was roughly triple Toshiba's initial estimate.
The overstatement was discovered when a whistleblower alerted Tesco's general counsel on Friday afternoon.
The overstatement caused doctors and pharmacies to submit inflated claims to Medicaid.
The overstatement, announced in an S.E.C. filing, was not related to the letter Verizon received from the S.E.C., Peter Thonis, a company spokesman, said.
The overstatement combined with poor performance in Tesco's stores at home and abroad to prompt a sharp decline in the market value of Britain's biggest retailer.
The overstatement stems from advertising sales that should have been accounted for as barter transactions because they were related to purchases of goods and services, Homestore.com said.
The overstatement represented 1.5percentt of the paper's daily circulation of roughly 526,000 and 5percentt of Sunday's circulation of about 786,000, the company said.
The overstatement of its half-year profit forecast had nothing to do with sales through the tills.
It later revised the overstatement up by £63m.
It later revised the overstatement up to £326m.
For fiscal 1999, the overstatement was $566 million, producing a net loss of $422 million.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com