NEW YORK, Nov. 5, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been filed against Tesco PLC ("Tesco" or the "Company") (Other OTC:TSCDY) for potential violations of the securities laws.
A class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of securities during the period between February 2, 2014 and September 22, 2014. The complaint alleges that Tesco and certain of its officers and directors misstated and/or failed to disclose material adverse facts regarding its profit and business revenues. On September 22, 2014 the Company said that the guidance it had given markets last month for the six-month period through Aug. 23 was overstated by an estimated $409 million (£250 million). The misstatement occurred in the company's core British food business. Following the release of this information, Tesco's share price fell sharply, damaging investors.
In addition, on October 29th, the U.K. Serious Fraud Office ("SFO") said it has opened a criminal investigation into Tesco PLC's accounting practices. The retailer was already under investigation by the Financial Conduct Authority ("FCA"), another U.K. regulator, for actions that led to a £263 million ($424.6 million) overstatement of its forecasted fiscal-first-half profit, somewhat more than the £250 million overstatement it flagged in September. The FCA said it would stand aside, given the SFO's decision to investigate. The Company announced last week that the accounting practices in question, which relate to the accelerated recognition of promotional income from suppliers, and delayed accrual of costs, at its core U.K. food business had gone on in at least its two previous financial years.
If you purchased securities of Tesco during 2012 through 2014 and want more information about the Tesco Securities Class Action and investigation, please contact Morgan & Morgan at 1-800-732-5200 or email info@morgansecuritieslaw.com.
If you purchased Tesco stock between 2012 and September 22, 2014, you may, no later than December 22, 2014, request that the Court appoint you as a lead plaintiff of a proposed class of investors. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Morgan & Morgan is one of the nation's largest 200 law firms. In addition to securities fraud, the firm also practices in the areas of antitrust, personal injury, consumer protection, wage and hour, and product liability. All of the Firm's legal endeavors are rooted in its core mission: provide investor and consumer protection and always fight "for the people."
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