Tesco faces further legal action over profits mis-statement
Tesco is facing potential legal action by its institutional shareholders in the aftermath of last years accounting scandal.
Tesco Shareholder Claims, a not for profit group which is fully funded and supported by US law firm Scott & Scott, has announced that it will seek to bring an action against Tesco on behalf of institutional shareholders over its £263 million profit overstatement.
TSC will be represented in the UK by McGuire Woods. Scott & Scott has already brought a similar action against Tesco in the US.
The group argues that whilst it supports the turnaround strategy being undertaken by the new management team, the mis-statement resulted in a “permanent destruction of value.”
TSC said it expects the claim to be in the region of 50p-70p per share.
David Scott, managing partner at Scott & Scott, said: "International institutions asked us to find a way to bring a claim in the UK which they can join."
John Bradley, chairman of the group, added: "Tesco is one of the widest held stocks in the UK and this loss has hit pension funds and investors across the UK and beyond. We look forward to bringing this claim to court."
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