Tesco Faces New Suit Over Accounting Overstatement
Tesco has been confronted with a new claim for damages concerning its 2014 profit overstatement. A spokesperson for the retailer reported that a claim had been filed by investor Manning & Napier, and that Tesco would be shortly filing a defence.
Manning & Napier is a US-based fund manager and, according to the Financial Times, suffered losses of $212 million because of the accounting irregularity.
Tesco issued a statement to the Stock Exchange in September 2014, saying that during final preparations for an interim results announcement it had identified a £250m overstatement of first-half profit.
The discovery led Tesco to place nine senior members on leave, overhaul its executive pay structure and become the subject of a criminal investigation in the U.K. It also sent company shares tumbling.
Tesco is already defending a £100m claim from a group of 125 institutional investors that was filed last October, and in November 2015 paid $12 million to settle a US shareholder lawsuit.
Three former senior executives are due to stand trial in September for fraud and false accounting.
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