Tesco is being sued for overstating its profits
Tesco's admission that it overstated its profits by £263m in its results earlier this year has led several law firms to consider taking action. Stewarts Law, financed by litigation funder Bentham Ventures BV, will be taking action to seek compensation for over 300 institutional shareholders. The firm says that the claim will allege that 'directors and senior management knew or were reckless as to whether Tesco's statements to the market were untrue or misleading and/or dishonestly concealed the true position, in breach of the Financial Services and Markets Act'.
Within six months
Sean Upson, a partner at the firm, said: 'We expect to issue proceedings against Tesco in the High Court in London within six months. We do not intend to wait for the outcome of the SFO (Serious Fraud Office) investigation which may take some years.' Source: Stewarts Law