Tesco hit with new damages claim over accounting scandal

Helen Cahill
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Tesco Set To Announce Christmas Trading Results
Tesco's share price crash after the scandal emerged wiped billions off its value (Source: Getty)

Tesco is fighting off a new damages claim from an investor over its 2014 accounting scandal.

According to the Financial Times, U.S. fund manager Manning & Napier has claimed it lost $212m (£164m) due to the scandal, in which Tesco overstated its profit by £326m.

The scandal led to a crash in Tesco's share price and the suspension of eight members of staff.

A Tesco spokesperson said the company was aware of the claim and would be defending itself.

Read more: Tesco shares fall despite quarterly sales rise on Christmas damp squib

The Serious Fraud Office has brought charges against three individuals involved in the case, former finance director Carl Rogberg, ex-commercial director for food John Scouler and former UK managing director Christopher Bush.

Tesco also faces a £100m damages claim from another group of investors. Bentham Group, the group's financial backer, has said that 125 shareholders are involved in the action, which seeks to prove the supermarket made "misleading statements to the stock market that omitted material information and which were relied on by investors when making investment decisions."

All three have denied the charges against them and the trial will begin in September next year.

Manning & Napier has been approached for comment.

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