Tesco PLC

Robbins Arroyo LLP: Tesco PLC (TSCDY) Misled Shareholders According to a Recently Filed Class Action

Robbins Arroyo LLP announces that an investor of Tesco PLC (OTC: TSCDY) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between February 2, 2014 and September 22, 2014. Tesco is a multinational grocery retailer with approximately 7,300 stores in 12 markets, as well as online.

Tesco Is Accused of Overstating Expected Profit

According to the complaint, shares of Tesco fell 15%, to close at $9.61 on September 22, 2014, following the announcement that the company had overstated its expected profit by 23%, or £250 million, because it had improperly accelerated recognition of income and delayed accrual of certain costs. Specifically, the complaint alleges that the overstatement concerns the treatment of commercial income and costs from its UK supplier, including incentives for sales. During that same announcement, Tesco revealed the suspension of the Managing Director of its UK business, along with its UK Director and two additional Food Directors.

The complaint further alleges that in less than a month since the investigation into the company’s accounting practices, ten Tesco senior staff members have been suspended, asked to leave, or resigned from the company. On October 23, 2014, Tesco confirmed that the earnings statement was overstated by £263 million, and that the company was forced to change its full year outlook due to concerns over it future performance.

Tesco Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.

 

Shareholder Information

Items marked with an asterisk (*) are required information.

First Name * Last Name *
Address City State/Province *
ZIP/Postal Code Country/Region Phone *
E-mail * Confirm: E-mail *

Shares Purchased:
Number of Shares: Buy Date : Price Per Share:
example: 125 example: MM/DD/YYYY example: 30.00
transaction:
transaction:
transaction:
transaction:
transaction:
If you have additional transactions or comments, please input the information below:

Shares Sold:
Number of Shares: Sell Date : Price Per Share:
example: 125 example: MM/DD/YYYY example: 30.00
transaction:
transaction:
transaction:
transaction:
transaction:
If you have additional transactions or comments, please input the information below:

Please Note: Neither the submission to nor the receipt of information by Robbins Arroyo LLP or one of its attorneys through this website constitutes an agreement by our firm to represent the individual and does not create an attorney-client relationship. Please do not send confidential or sensitive information through this website. This information should be communicated through a direct contact with an individual at the firm.

* I have read the disclaimer information
+=

    Send This Post

    Tags: