Gifts Today magazine

Tesco faces shareholder legal action as senior director leaves

Tesco is facing legal action from shareholders in the aftermath of its accounting scandal as another senior director exits the supermarket giant, reports Retail Week.

US law firm Scott+Scott claims Tesco’s profit overstatement last year caused a “permanent destruction of value to shareholders”.

The firm has already filed a lawsuit against the chain in America and accused it of misleading investors.

Bosses at Scott+Scott revealed they are now in “active discussions” with institutional shareholders in the UK and Europe with a view to filing a claim.

Scott+Scott managing partner David Scott said: “International institutions asked us to find a way to bring a claim in the UK which they can join.”

It comes after Tesco admitted that it had over-stated profits by £263m in September last year.

A boardroom re-shuffle has taken place since the accounting scandal and the man who oversaw those changes, senior independent director Patrick Cescau, has now quit Tesco.

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