Tesco faces legal action from shareholders over accounting scandal

Helen Cahill
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Tesco Supermarket Report 92% Fall In Profits
Shareholders will file the case by the end of October (Source: Getty)

Tesco faces fresh legal action over its accounting scandal in 2014.

A group of investors are bringing a £150m lawsuit against the retailer, saying they have suffered financially due to the £328m black hole that was discovered in Tesco's accounts two years ago.

After it emerged that Tesco had overstated its profits, its share price plunged 10 per cent.

The lawsuit is being brought by Stewarts Law and will be funded by Bentham Europe.

Jeremy Marshall, chief investment officer at Bentham Europe, told the BBC:

Shareholders were misled by information inaccurately provided to the market with knowledge by management.

He said the action would be filed by the end of October and that the claim involved 60 large investors - but he expected that number to rise.

The shareholder action comes after three former Tesco executives pleaded not guilty to fraud charges brought by the Serious Fraud Office (SFO) over the accounting scandal.

Former finance director for Tesco UK Carl Rogberg, 49, ex-UK managing director Christopher Bush, 50, and ex-commercial director for food John Scouler, 48, have all been charged with one count of fraud by abuse of position and one count of false accounting.

The SFO claims the alleged activity took places between February and September 2014.

Tesco has declined to comment.

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