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Investors sue Tesco over its cooking of the books in 2014

By Ravender Sembhy

Tesco is facing legal action from a group of 125 large investors who claim to have lost "well in excess of £100m" as a result of the supermarket's accounting scandal two years ago.

Bentham Europe, the firm fronting the action, said that institutional funds have filed the lawsuit in a bid to prove that Tesco "made misleading statements to the stock market that omitted material information and which were relied on by investors when making investment decisions".

Tesco suspended eight directors and was probed by the Financial Conduct Authority and Serious Fraud Office (SFO) after it was found to have inflated profits by £236m in 2014. The figure was later revised up to £326m.

Jeremy Marshall, chief investment officer of Bentham Europe, said: "The misstatement of profits leading to a dramatic collapse in the Tesco share price caused substantial damage to many shareholders who manage money for thousands of investors."

The SFO has charged three former Tesco executives over the accounting scandal.

Belfast Telegraph


From Belfast Telegraph