Compensation claim for Tesco’s shareholders could run into billions
Non-profit organisation, Tesco Shareholders Claims Limited has received full backing from US law firm, Scott+Scott LLP
Print24 March 2015
A gigantic compensation claim from shareholders is currently looming over Tesco, following the aftermath of last year’s accounts scandal.
Tesco Shareholders Claims (TSC) Limited, a non-profit organisation, is appealing to other shareholders affected by last year’s crash in share value, to join the claim.
The group has received full funding from American law firm, Scott+Scott LLP. In a statement, the non-profit organisation said: “A permanent destruction of value has occurred and had the accounting irregularities not taken place the share price, and value of the company, would today be materially higher.”
TSC expects the claim to be in the region of 50p-70p per share, with Tesco Plc currently having more than eight billion shares listed.
Scott+Scott LLP said when the misstatement was admitted on 22 September, and Tesco revealed that it had overstated its expected profit for the half year by £263 million, shares fell to a 14-year low of 164.8p, although they have since recovered to around 244p.
John Bradley, the group’s chairman of the group, said: “This loss has hit pension funds and investors across the UK and beyond. We look forward to bringing this claim to court.”
UK firm Stewarts Law previously announced in November, that it was bringing action against Tesco on behalf of another group of shareholders, following Tesco’s revelation on 22 September 2014 that it had overstated its expected profit for the half year by £263 million.
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