Bentham Ventures B.V. is funding a legal action on behalf of shareholders against supermarket giant Tesco PLC. The claim will seek to establish that shareholders are entitled to compensation for losses caused by Tesco’s alleged breaches of the Financial Services & Markets Act arising from overstating its earnings.
On 23 October 2014, Tesco announced that recent profit overstatements totalled £263 million, wiping over £2 billion from Tesco’s share price. The supermarket further downgraded its expected profits for the current financial year significantly and reported a fall of 92% in pre-tax profits.
The action on behalf of shareholders alleges that Tesco made misleading and untruthful statements and omissions to the market in relation to its profits for recent financial periods. This alleged conduct has resulted in, amongst other things, the suspension of numerous senior Tesco executives and investigations by lawyers, a forensic accounting firm, the Financial Conduct Authority and the Serious Fraud Office (SFO). As a result of the SFO's investigation, on 9 September 2016, the SFO brought criminal charges against three former Tesco executives, of fraud by abuse of position and of false accounting. All three will stand trial at Southwark Crown Court in September 2017.
All current and former institutional shareholders who acquired at least 10,000 Tesco shares during the period 17 April 2013 to 22 October 2014, and who had not sold all of those securities prior to the market announcements made by Tesco on 29 August, 22 September or 23 October 2014, are eligible to participate in the proposed action.
Please read the accompanying Media Release, Claim Overview and Frequently Asked Questions documents.
Click here if you are an institutional investor and acquired more than 10,000 Tesco shares in the relevant period to register for the Tesco action
Please note that in order to receive documents relating to the proposed case, you will be asked to enter a Confidentiality Agreement before receiving further claim information other than the Claim Overview and Frequently Asked Questions.