125 institutional funds file claim against Tesco
The claims are for well in excess of £100 million over alleged breaches of the Financial Services & Markets Act in relation to over-statement of earnings.
The legal action will seek to prove that Tesco made misleading statements to the stock market that omitted material information and which were relied on by investors when making investment decisions.
On 23 October 2014, Tesco announced it had previously over-stated its profits by £263 million.
The announcement, which was accompanied by a 92 percent drop in interim profits, cut a further c. £1 billion from Tesco’s market capitalisation (which had already reduced by c. £2 billion following the initial disclosure to the market in September 2014).
Jeremy Marshall, chief investment officer of Bentham Europe, said: “The misstatement of profits leading to a dramatic collapse in the Tesco share price caused substantial damage to many shareholders who manage money for thousands of investors.” ■