SAN DIEGO and CHESHUNT, United Kingdom, Oct. 29, 2014 (GLOBE NEWSWIRE) -- Shareholder rights law firm 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.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/tesco-plc
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, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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