Tesco Facing Legal Action in the United Kingdom Over Accounting Irregularities
UNITED KINGDOM – It looks as though Tesco may find itself in court in the coming months, as the retail chain across the water is now facing legal action by a group of investors over a lost of funds.
Jeremy Marshall from Bentham Europe, the firm funding the claim, told BBC that the claim currently involves 60 investors and alleges that the retail chain lost £150 million (or approximately $191 million) due to the company’s accounting irregularities scandal from 2014.
"Shareholders were misled by information inaccurately provided to the market with knowledge by management," stated Marshall to news source BBC.
The case involves claimants of pension funds from UK, Europe, and U.S., as well as general asset managers.
Marshall continued to say that legal action is expected to filed by the end of the month, with more investors expected to join the current number once the case has been filed.
As of this time, Tesco has yet to comment on the case.
This announcement comes prior to Bloomberg’sexpectations that Tesco will release its half-year results on Wednesday, and report its UK operating margin to have nearly doubled with its third consecutive quarter of same-sales growth. CEO Dave Lewis is also expected to announce plans to accelerate Tesco’s profit expansions.
As updates surrounding the impending case proceed, AndNowUKnow will continue to report.