US law firms line up to sue Tesco

By Neasa MacErlean

10 November 2014 at 09:06 BST

At least five US law firms are considering launching class actions against the supermarket chain after accounting irregularities were exposed in September.

Scott & Scott, for instance, says it is in communication with several investors in Europe, following the disclosures that Tesco overstated its profits by £263m. David Scott, a partner in the firm, said: ‘I have spoken to asset managers and pension funds in the UK and on the continent. Several European clients are asking us to look at their holdings and determine where the best forum for them to file a class action would be.’ 

UK shareholders

One lawsuit has already been filed, on behalf of holders of Tesco’s US depository shares. The suit accuses Tesco of making false statements and of failing to ‘disclose the truth regarding the company’s financial condition’. Scott & Scott is in discussions with English solicitors to bring a similar case for UK shareholders. Source: Financial Times


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