Tesco faces £100m damages claim over profits scandal

Tesco is facing a damages claim for more than £100m over alleged accounting irregularities.

Tesco faces £100m damages claim over profits scandal

The UK’s biggest supermarket chain is accused of overstating its profits by £263m in September 2014 in a financial statement. 

Auditors found that the discrepancy came about from Tesco booking payments from suppliers before the money was due.

Tesco suspended four people over the matter, which caused an 11% drop in shares in September 2014. The share price has fallen about 20% since 2014.

Three former Tesco executives have been charged by the Serious Fraud Office for fraud and false accounting as a result of the incident.

Bentham Europe, the company funding the legal claim from over 100 institutional funds, says Tesco has breached the Financial Services and Markets Act.

Tesco has not commented on the case.


Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.


Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

1 Meet the new breed of ad agency chiefs

A new wave of first-time CEOs are opting to do things differently in an evolving landscape. They discuss the business model of the future with Jeremy Lee.

Case study: How 'This girl can' got 1.6 million women exercising

1 Case study: How 'This girl can' got 1.6 million women exercising

"This girl can" was based on a powerful insight: that the fear of judgement by others is the primary barrier holding women back from participating in sport.

Just published