Rosenblatt Solicitors (“Rosenblatt”), the independent City law firm, is compiling a list of potential claimants for an action against Tesco plc (“Tesco”) as a result of its market abuse between 2013-2015. During this time, executives at Tesco intentionally manipulated its trading profits and made misleading statements to the stock market that omitted material information, resulting in potential losses for investors who had relied on this information when making investment decisions.
On 29 August 2014, Tesco released financial information that was inaccurate. It subsequently revealed on 22 September 2014 that it had identified an overstatement for its first-half profits for that year.
By 2015 the company further admitted that an internal investigation had identified that commercial income had been overstated in various reporting periods between 2013 and 2015. These statements were relied on by investors who, as a result, may have suffered economic losses through buying shares and/or bonds at inflated prices during this period.
In March 2017, the Financial Conduct Authority (“FCA”) announced a compensation scheme for investors who made a loss in the period between 29 August 2014 and 19 September 2014. This compensation was set at 24.5p per share plus interest of 1.25% per annum for institutional investors and 4% per annum for retail investors.
It is yet to be determined whether this compensation is fair or reasonable; however, it only covers a small window of time, whereas it is clear that Tesco had been releasing inaccurate financial information for much longer.
As a result, institutional investors have already filed a lawsuit against Tesco for damages and Rosenblatt has been invited to participate alongside them, representing the interests of retail investors.
Commenting on the potential group action, Tania MacLeod, Managing Partner, said:
“We believe the FCA compensation scheme does not extend far enough. What is beyond doubt is that, even on the findings of Tesco’s own investigation, the reporting of its financial information was overstated long before 29 August 2014 and thus there is a likelihood that investors bought stock at inflated prices going back to at least 2013. If you are a retail investor and bought and/or sold Tesco shares or bonds during this period, and are interested in being part of a group to bring a claim, please visit our website.”
To submit your expression of interest, please visit: http://rosenblatt-law.co.uk/tesco-potential-client-form/
If you have any questions regarding the process, please email firstname.lastname@example.org
Tania MacLeod t: 020 7955 0880
Rosenblatt Solicitors e: email@example.com
Amy Williams/Emily Church e:firstname.lastname@example.org
Redleaf Communications t: 020 7382 4747
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