Tesco scandal brings legal action from investors
Jeremy Marshall from the firm funding the claim, Bentham Europe, said “Shareholders were misled by information inaccurately provided to the market with knowledge by management,”
He added “the legal action would be filed by the end of October”
Tesco have so far refused to make any comments on the matter.
The claim currently involves 60 large investors according to Mr Marchall but the total number is expected to grow as more legal action is taken
Claimants included not just general asset managers but also pension funds from the UK, Europe and the US.
Only a month ago, as part of a continuing criminal investigation, the SFO (Serious Fraud Office) charged 3 ex Tesco executives with fraud and false accounting.
This inquiry was started by the SFO in October 2014 following Tesco’s announcement that its profits had been exaggerated by £263 million.
After further investigation, that number was later increased to £326 million
It was discovered that the inflated profit figures were caused by Tesco booking payments from suppliers before the company had been due the money.
Since 2014 Tesco’s share prices have fallen by 20% following the damage caused by the affair