Investors sue Tesco over accounting error

Claim to have lost £150m

Tesco is facing legal action from 60 investors, including UK fund managers, who claim to have lost £150m due to accounting errors made by the supermarket back in 2014.

The company came under fire in September 2014 when it overstated its half-year profits by £250m, which was later revised to £326m. Following the announcement, Tesco shares dropped 11% to 205.6p and have since fallen a further 20%. Yesterday, shares traded around 185.4p. According to Bentham Europe, the litigation funder, the claimants are made up of asset managers, pension funds and hedge funds in the UK, Europe and the US, and will file a lawsuit in the next few weeks, reported the FT. Jeremy Marshall, chief investment officer of Bentham Europe, said: "We are confident of the resu...