A group of UK and international investors is filing a lawsuit for £150m against Tesco, claiming they have made losses because of accounting irregularities performed two years ago.
In September 2014, it was revealed that the profits of the supermarket giant had been overstated by £250m, with four senior executives consequently being suspended. This figure then rose to £326 upon revision, and shares in Tesco fell drastically as a result.
The retailer has been the subject of an investigation by the Serious Fraud Office (SFO) since the scandal was discovered, and three former senior directors were charged last week with fraud.
Bentham Europe is funding the litigation, while Stewarts Law is leading the class action. Sean Upson, of Stewarts Law, said: “Investors say that they were induced to buy or hold Tesco shares as a result of the earlier financial misstatements and suffered losses when the share price fell.”
The lawsuit will be filed this month, according to Jeremy Marshall, CIO of Bentham Europe, who also stated that it is highly likely more investors will join the group as the claim progresses.
Tesco is the largest retailer in the UK, with a greater market share than its rivals Asda, Sainsburys and Morrisons, with the quartet referred to as the ‘Big Four’. However, it has struggled in recent years, with its share price falling 20 per cent since the scandal in September 2014.