A US law firm is claiming that Tesco’s overstatement of profits in 2014 misled investors, resulting in “permanent destruction of value to shareholders.” Scott and Scott filed a class-action lawsuit against the UK supermarket chain in the US and intends to file a claim in Europe as well.
“International institutions asked us to find a way to bring a claim in the UK which they can join,” said David Scott, managing partner at Scott and Scott. Tesco has not commented on the situation. This is the second law firm that is planning to file a lawsuit on behalf of Tesco shareholders. The UK-based Stewarts Law is also talking to investors about filing a claim against the supermarket giant.
The retailer revealed in September that it had misstated its half-year profit by GBP 250m, which has since been revised to GBP 263m The UK’s Serious Fraud Office has launched a criminal investigation into Tesco’s accounting irregularities.
