The Financial Times reports that "US law firms are lining up investors willing to sue Tesco, following the discovery of significant accounting irregularities at the UK supermarket.
"US law firm Scott & Scott says it is in talks with several European institutional investors about filing legal claims against Tesco after it emerged in September that the retailer had misstated its profits by £263m."
The story notes that "investors that bought Tesco’s US depository shares can join an existing lawsuit filed in the country at the end of October on behalf of the Texas-based Irving Firemen’s Relief and Retirement Fund. At least five US law firms published notices online last week highlighting the class action suit and encouraging other investors to consider filing similar claims.
"The lawsuit accuses Tesco, its former chief executive Philip Clarke and ex-chief financial officer Laurie McIlwee of making false and misleading statements and failing to 'disclose the truth regarding the company’s financial condition'."
"US law firm Scott & Scott says it is in talks with several European institutional investors about filing legal claims against Tesco after it emerged in September that the retailer had misstated its profits by £263m."
The story notes that "investors that bought Tesco’s US depository shares can join an existing lawsuit filed in the country at the end of October on behalf of the Texas-based Irving Firemen’s Relief and Retirement Fund. At least five US law firms published notices online last week highlighting the class action suit and encouraging other investors to consider filing similar claims.
"The lawsuit accuses Tesco, its former chief executive Philip Clarke and ex-chief financial officer Laurie McIlwee of making false and misleading statements and failing to 'disclose the truth regarding the company’s financial condition'."
- KC's View:
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My first reaction is that we should cue the ambulance sirens, because clearly we have attorneys ready to chase them.
On the other hand … if the former Tesco leaders can be proven to have cooked the books to make themselves look better, then maybe it is heads-on-pikes time, and they deserve to spend a lot of time in courtrooms defending themselves.
