NEW YORK, Oct. 28, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP announces the filing of a class action lawsuit against Tesco PLC ("Tesco" or the "Company") (NYSE:TSCDY) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 14-cv-8495, is on behalf of a class consisting of all persons or entities who purchased Tesco securities between February 2, 2014 and September 22, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Tesco securities during the Class Period, you have until December 22, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Tesco is a multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom ("UK"). Tesco is one of the world's largest retailers with stores in 12 countries, including the UK.
The Complaint alleges that throughout the Class Period, the Company made false and/or misleading statements and failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose the truth regarding the Company's financial condition.
Specifically, on September 22, 2014, Tesco surprised the market when it announced that it had overstated its expected profit for the half year because it had improperly accelerated recognition of income and delayed accrual of certain costs. The Company further stated that profits were overstated by approximately £250m ($402 million) or 23%. The overstatement concerned specific treatment of commercial income and costs from UK suppliers as well as extra incentives, often called "rebates," that Tesco received from suppliers for hitting a certain level of sales or for support for promotions.
The Company further announced that it had suspended the managing director of its UK business along with its UK director and two food directors. The Company also announced that it had retained accountants from Deloitte LLP ("Deloitte") to undertake an independent and comprehensive review of the accounting issues and work with Freshtields Bruckhaus Deringer LLP, the Company's external legal advisers. The investigation required that executives hand over their laptops and be interrogated.
On this news, Tesco ADRs fell 15% from $11.29 on September 19, 2014 and declined to $9.61 per share on September 22, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.