Independent City law firm Rosenblatt Solicitors is compiling a list of potential claimants for an action against Tesco in wake of the supermarket’s market abuse between 2013 and 2015.
Tesco executives were found to have manipulated trading profits and released misleading stock market statements that may have resulted in potential losses for investors.
In 2015 Tesco admitted an internal investigation had found that commercial income was inflated in several reporting periods between 2013 and 2015.
While the FCA announced a compensation scheme for investors in March 2017, Rosenblatt deems the timeframe covered – 29 August to 19 September 2014 – to be insufficient, claiming Tesco had been releasing inaccurate financial information for far longer. As such Rosenblatt is joining institutional investors – who have already filed a lawsuit against Tesco for damages, representing the interests of retail investors.
Tania MacLeod, Rosenblatt managing partner, says: “We believe the FCA compensation scheme does not extend far enough. What is beyond doubt is that, even on the findings of Tesco’s own investigation, the reporting of its financial information was overstated long before 29 August 2014 and thus there is a likelihood that investors bought stock at inflated prices going back to at least 2013.”