Tesco faces potential legal battle over £250m profit error

Tesco landed in hot water earlier this year after overstating its half-year profits by £250m and could now face claims from a raft of shareholders represented by Stewarts Law.

The supermarket giant has already called in Freshfields Bruckhaus Deringer to investigate the overstatement, determine whether any rules were broken by the chain and advise management on how to respond.

Freshfields’ workload could now be set to expand following the news that Stewarts Law is seeking institutional investors looking for compensation in the wake of the scandal.

It isn’t the first time a Stewarts Law claimant group has taken on a major corporation. The firm is currently representing a group of over 300 institutional claimants suing the Royal Bank of Scotland over a 2008 rights issue they allege misrepresented the health of the bank.

The firm has returned to a litigation funder to bankroll part of the case, this time furnishing its multi-million pound budget with support from Bentham Europe.

Also on TheLawyer.com:

Featured Briefings
Real estate – Dentons: Apportioning the magic and sparkle — Supreme Court to consider M&S break clause rent apportionment case
Intellectual property – Walker Morris: Website-blocking order granted to prevent trademark infringement
Construction – Nabarro: Liberty v Cuddy (3): is the court acting as a bondsman?
Banking & finance – Walker Morris: AIB v Redlers: the extent of a lender’s loss caused by solicitors’ breach of trust
Litigation – Shoosmiths: Settling your dispute — a risky business?