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Filed with an “Extended Class Period”
Morgan & Morgan reminds investors that a class action lawsuit has been filed against Tesco PLC (TSCDY) for potential violations of the securities laws.
A class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of securities with an extended Class Period of April 17, 2013 through October 22, 2014. 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 October 23, 2014, the Company issued an interim financial and operational report entitled, “Interim Results 2014/2015” wherein Tesco disclosed that an independent investigation by Deloitte had concluded that there was a gross overstatement of profit expectations, and that the fraudulent revenue recognition and accounting practices to increase profits had occurred over several reporting periods.
In addition, on October 29th, the U.K. Serious Fraud Office said it has opened a criminal investigation into Tesco PLC’s accounting practices. The retailer was already under investigation by the Financial Conduct Authority, another U.K. regulator, for actions that led to a £263 million ($424.6 million) overstatement of its forecasted fiscal-first-half profit, somewhat more than the £250 million overstatement it flagged in September.
The FCA said it would stand aside, given the SFO’s decision to investigate. The Company announced last week that the accounting practices in question, which relate to the accelerated recognition of promotional income from suppliers, and delayed accrual of costs, at its core U.K. food business had gone on in at least its two previous financial years.
If you purchased Tesco stock between 2012 and September 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.
