Tesco facing lawsuit after accounting irregularities

Supermarket giant Tesco is facing a £150m lawsuit from a group of 60 large investors, who are claiming to have lost money because of accounting irregularities back in 2014.

Two years ago, it was discovered that Tesco’s profits had been overstated by £250m, resulting in four senior executives being suspended. The figure was then revised up to £326m, and consequently company shares quickly fell. The Serious Fraud Office (SFO) then began an inquiry the following week, and last week charged three former senior directors with fraud.

As a result of the accountancy scandal, a group of UK and international investors are claiming they lost £150m collectively, with the claim being funded by law firm Bentham Europe.

Jeremy Marshall, Chief Investment Officer (CIO) of Bentham Europe, revealed that the lawsuit will be filed in the next four weeks, and more investors are expected to join.

Talking to the BBC, Mr Marshall said: “Shareholders were misled by information inaccurately provided to the market with knowledge by management.”

The class action is being led by Stewarts Law. Sean Upson, from the litigation law firm, 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.”