Tesco faces potential legal action after accounting scandal

Scott and Scott is claiming that the supermarket giant’s overstatement of its profits last year, caused a “permanent destruction of value to shareholders.”
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Tesco is facing potential legal action from UK shareholders after details of its accounting scandal came to light.

US law firm Scott and Scott is claiming that the supermarket giant’s overstatement of its profits last year, caused a “permanent destruction of value to shareholders.”

The firm said it was in active discussions with institutions in the UK and Europe about filing a claim, but none had yet signed up.

“International institutions asked us to find a way to bring a claim in the UK which they can join,” said David Scott, managing partner at Scott and Scott.

Scott and Scott is funding a UK law firm to represent the group, known as Tesco Shareholder Claims Limited, to try to gain support for a potential claim.

The supermarket revealed that it had mis-stated its half year profit guidance by £250m in September 2014.

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