1. Market Data
October 3, 2016

Tesco to face legal action over 2014 accounting scandal

Tesco is facing legal action from a group of 60 investors who claimed to have lost £150m in 2014 due to accounting irregularities in the supermarket chain.

Tesco is facing legal action from a group of 60 investors who claimed to have lost  £150m in 2014 due to accounting irregularities in the supermarket chain.

The scandal forced the retailer to suspend four senior executives and conduct a probe in 2014. It revealed profits were artificially inflated by £250m. Due to these accounting irregularities, the value of the supermarket chain dropped by around £2bn, reported The Guardian.

"A lot of people thought this case would never get off the ground."

Stewarts Law and Bentham Europe began seeking the help of other shareholders to take a legal action against Tesco. This case is expected to be filed by this month.

Bentham's chief investment officer Jermy Marshall was quoted by The Guardian as saying: “This is the first wave. There will be a second series of investors that will join a bit later. A lot of people thought this case would never get off the ground.”

The three people charged with fraud and false accounting are former finance director Carl Rogberg, former managing director Christopher Bush, and former commercial director John Scouler. They have denied the charges.