Hausfeld launches major shareholder action against Tesco
Hausfeld is building a claim in the UK on behalf of institutional investors who suffered loss after it was revealed that Tesco had been publishing false and misleading information to the market about its profits and accounting practices.
In 2014 Tesco announced that it had previously overstated its interim profits by a total of £263 million in a period spanning at least three financial years. Following this announcement, Tesco’s shares fell by over 25%, causing considerable loss for shareholders.
Claimants will be supported by a financing package provided by Harbour Fund III advised by Harbour Litigation Funding, a leading global litigation funder.
Commenting on the announcement, London based Partner John McElroy says:
"We believe that, in addition to recovering losses, shareholder actions are a means for investors to hold boards to account and effect behavioural change within the companies they own, thereby contributing to long term value for their beneficiaries.
“We are working with our colleagues in our international offices to bring together shareholders around the world who have been affected.”
Stephen O’Dowd from Harbour comments:
“Together with Hausfeld, we have designed a market leading funding and insurance package which enables claimants to bring their claim on a fully funded basis. We are delighted to be working with Hausfeld and believe that their experience in group litigation and financial services makes them perfectly placed to take this forward.”