10th October 2016
Tesco in Accounting Irregularity Scandal
A group of investors are taking legal action against Tesco after they lost £150,000,000 due to the supermarket being involved with an accounting irregularity scandal.
Jeremy Marshall, Chief Investment Officer at Bentham Europe said "Shareholders were misled by information inaccurately provided to the market with knowledge by management", while also going on to claim that at least 60 investors would be taking action against Tesco. He also declared that claimants included those with pension funds from the UK, Europe and the US was involved.
These claims have arisen after the Serious Fraud Office (SFO) charged three former Tesco Executives relating to fraudulent activity involving false accounting. The investigation began in October 2014 after Tesco announced that its profits had been overstated by £263 million and has since been found to be £326 million when previous accounts were included. The legal process in relation to this is still on going.
It has since been found by auditors that the inflated profit was essentially caused by Tesco booking payments from their suppliers despite being due the money. This has since damaged their share price which has dropped by approximately 20% since 2014.
Sundeep Soor, Head of Fraud at Cartwright King Solicitors said: “There are criminal proceedings on going against three Tesco executives. If convicted the SFO will have to consider whether to proceed to financial recovery against the individual executives via the Proceeds of Crime Act confiscation regime.”
Cartwright King has a dedicated and specialist team of Fraud Solicitors that provide advice and representation in all types of investigations and prosecutions.