Shares in the supermarket giant Tesco have taken a hit after another one of its investors initiates a claim for financial damages.
The Financial Times reported that US investment manager Manning & Napier, which manages approximately $32bn in assets were filing a claim against the retailer over a scandal that took place in 2014.
The funds management team are claiming that they have suffered a loss of $212m as a result of Tesco’s accounting failures.
Tesco admitted their error in a September 2014 statement. They stated that they had located an overstatement of £250m for profits in the first half of that year.
Investigations later found that funds had been deliberately withheld from suppliers to manipulate its sales figures. This is a catastrophic breach of supermarket regulations.
As a result of this blunder, Tesco were sued by several of their investors claiming that they had lost millions as a result of purchasing shares based on misleading accounts.
Tesco lost more than half of their value due to the scandal and they are still struggling to recover.
A Tesco spokesman has stated that they are aware of the new claim that has been filed and they are preparing to file a defence.
So far Tesco has been sued for over £100m due to the accounting scandal. Only time will tell how many more companies are due to come forward and continue to file lawsuits.
Three former Tesco executives have been charged by The Serious Fraud office for abuse of position, fraud and false accounting. All three had allegedly failed to rectify income figures that had been marked up by £326m. The erroneous numbers were then released to auditors and the wider market. All three executives have denied the charges and are expected to stand trial in September 2017.
Photo credit: Gordon Joly