Case Details
Type of Claim: Section 90A/Schedule 10A Financial Services and Markets Act 2000
Claim Period: 17 April 2013 – 22 October 2014
Defendants: Tesco Plc
Jurisdiction: England (claim filed in UK High Court)
Governing Law: English law
Limitation: 21 September 2020
Case Summary
Tesco Plc is a British multinational groceries and general merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire, England. It is listed on the London Stock Exchange (LN: TSCO) and is a constituent member of the FTSE 100.
On 29 August 2014, Tesco gave a trading update in which it issued a profit warning and announced a cut in its dividend. On the 22 September 2014, Tesco announced that it had overstated its first half profits by an estimated £250m and had instructed Deloitte to undertake a review. It also suspended four senior managers.
On 23 October 2014, Tesco published its delayed interim results showing that the overstatement was greater than first thought and was now estimated at £263m. The Financial Conduct Authority (FCA) announced on 19 October 2014 that they were launching an investigation.
On 9 September 2016, the Serious Fraud Office (SFO) charged three executives with fraud and false accounting.
On 28 March 2017, the FCA announced that Tesco plc and Tesco Stores Limited (Tesco) had agreed that they committed market abuse in relation to a trading update published on 29 August 2014. The FCA also announced a compensation scheme for shareholders that bought shares in the period 29 August 2014 to 19 September 2014.
Stewarts filed a claim (FL-2017-000001) on behalf of institutional shareholders under s90A/Schedule 10A Financial Services and Markets Act 2000 with a claim period of 17 April 2013 to 22 October 2014.
Tesco settled the claim with Stewarts’ clients and the court dismissed the proceedings on 16 July 2020.
Subsequently Stewarts filed a new claim (FL-2020-000028) on 18 September 2020 on behalf of additional institutional clients.
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