Morgan & Morgan Has Filed a Complaint Against Tesco PLC With Expanded Class Period of April 18, 2012 and October 22, 2014 -- TSCDY


NEW YORK, Dec. 19, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan has filed a class action lawsuit against Tesco PLC ("Tesco" or the "Company") (OTC:TSCDY) in the Southern District of New York (Case No. 14-CV-10020) on behalf of purchasers of securities during the period between April 18, 2012 and October 22, 2014 ("Class Period") for potential violations of the securities laws.

If you purchased securities of Tesco during the Class Period 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 April 18, 2012 and October 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.

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, Tesco announced that it had overstated its expected profit for the half year because it had improperly accelerated recognition of income and delayed accrual of certain costs. The Company further announced that it had suspended the managing director of its UK business along with its UK director and two food directors. Following this news, Tesco ADRs plummeted 15% from $11.29 on September 19, 2014 and declined to $9.61 per share on September 22, 2014 on unprecedented volume.

In addition, on October 1, 2014, the Company disclosed that the U.K.'s Financial Conduct Authority ("FCA") was conducting an investigation into the Company's accounting irregularities. Moreover, on October 7, 2014, Tesco announced that commercial director Kevin Grace had been suspended, and on October 14, the Company suspended three more executives. On October 23, 2014, Tesco disclosed, in connection with the Deloitte & Freshfields report, that the size of the misstatement was actually at least £263 million ($420 million), that similar improper accounting practices had impacted its financial results reported in prior periods, and that the Company's chairman was resigning. The Company also disclosed on October 23 that first half-year profits had fallen a dramatic 90% from the same period the prior year, and the Company told investors it was unable to provide any full-year profit guidance. In addition, the Company's chairman, Defendant Sir Richard Broadbent, announced his resignation, telling investors that he was "deeply disappointed" about the accounting irregularities and calling the developments a "matter of profound regret."

Following these disclosures, Tesco securities have continued to plunge in value, with the Company's ADRs losing over half of their value in the past year. In all, eight senior Tesco executives have been removed from their positions, and the Company's fraudulent accounting is now the focus of a criminal investigation by the U.K.'s Serious Fraud Office.

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."

Attorney advertising. Prior results do not guarantee a similar outcome.



            

Contact Data