The Drum Awards for Marketing - Extended Deadline

-d -h -min -sec

Tesco

Tesco shareholders seek billions in reparations following profit overstatement

Author

By John Glenday, Reporter

March 24, 2015 | 1 min read

Reverberations from a £263m profit overstatement by Tesco continue to resonate with the retailer facing legal action from its own shareholders which could potentially see it forced to pay out billions in compensation.

According to Sky News Tesco Shareholder Claims Ltd (TSC) and US legal firm Scott & Scott are seeking reparations for individual investors and pension funds after the businesses share price slumped in the wake of the scandal coming to light.

Claimants argue that Tesco is in breach of the Financial Services and Markets Act by providing inaccurate revenue figures.

In a statement TSC said: “A permanent destruction of value has occurred and had the accounting irregularities not taken place the share price, and value of the company, would today be materially higher.

"TSC expects the claim to be in the region of 50p-70p per share. Tesco Plc has in excess of eight billion shares listed.”

The latest headache for the supermarket chain comes in the wake of a separate action being prepared by Stewart’s Law.

Tesco

More from Tesco

View all

Trending

Industry insights

View all
Add your own content +