TESCO PLC INVESTOR CLAIMS FOUNDATION
Pomerantz has formed a Dutch settlement foundation, or stichting, which seeks to provide investors in Tesco plc (“Tesco” or the “Company”) with an out-of-court solution to resolve the October 2014 disclosure errors that resulted in losses associated with purchases and/or sales of Tesco securities on the London Stock Exchange between September 22, 2014 and April 20, 2015 (the “Class Period”).
Tesco, based in the United Kingdom, is one of the world’s largest grocery stores.
On September 22, 2014, Tesco shocked investors by disclosing that the Company had identified a “serious” accounting issue resulting in an overstatement of profits for the first half of 2014 by at least £250 million ($400 million). On October 23, 2014, the Company announced that its first half-year profits had fallen a dramatic 90% from the same period the prior year as a result of the manipulation. Furthermore, the Company disclosed to investors that it was now unable to provide any full-year profit guidance.
Deloitte was hired to independently investigate the accounting “issue,” at the conclusion of which it raised the overstatement to £263 million, of which £145 million was allocated to profit overstatements in prior years' financial statements.
Following the scandal, a total of ten senior Tesco executives – including the Chairman of the Board and the head of the Company’s U.K. operations – were removed from their positions at the Company.
The aftermath of Tesco’s shock announcements also saw a probe from the U.K.’s Financial Conduct Authority, the downgrading of Tesco’s short and long term credit rating by Moody’s Credit Agency, as well as the initiation of a number of legal actions against the Company.
Tesco's share price has also suffered a steep decline, falling from £250 per share in August 2014 to £169 per share in October 2014 - declines resulting in market capitalization losses of over £10 billion.
Investors who held shares during the Class Period and/or want more information should email an inquiry to: firstname.lastname@example.org.