Wednesday 21 March 2018

Legal team prepares claim case on Tesco

A customer pushes a shopping cart past a poster reading
A customer pushes a shopping cart past a poster reading "Lots of brands now cheaper at Tesco" inside a Tesco supermarket store, operated by Tesco Plc, in the Kensington district of London, U.K., on Thursday, Jan. 8, 2015. Photographer: Simon Dawson/Bloomberg

Tesco is facing the threat of a shareholder damages claim in the UK over the £263m (€369m) profit overstatement that plunged Britain's biggest retailer into crisis last year.

A vehicle set up by US law firm Scott & Scott to explore legal action in the UK and Europe said in a statement yesterday that it expects to issue a claim later this year.

The group, Tesco Shareholder Claims, has hired senior British lawyer Philip Marshall. "The case against Tesco is strong, and will involve a substantial claim," the group said.

It has signed up "various institutional investors" to join the compensation claim, it said, but did not name them. Tesco declined to comment.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business