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Tesco shares / fraudulent reporting.

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  • Tesco shares / fraudulent reporting.

    About 6 months ago I bought some Tesco shares, based on the company's published accounting data, the prospects of good dividends and a likely share price increase over time.
    As most people will now know, there seems to have been skullduggery.
    I read today that Tesco admits to falsely reporting £265 million profits that they haven't made.
    Also that the practice appears to have been going on for years.
    What do members consider my prospects might be if I issued county court small claims track process against Tesco?
    I have lost over £5000 since I bought the shares.
    I'd have to jointly sue them with Halifax Sharedealing Ltd, as joint defendants, so that Tesco couldn't reasonably claim no contract with me.
    Very interested in your opinions, please.
    Tags: fraud, shares, tesco

  • #2
    Re: Tesco shares / fraudulent reporting.

    Hi Sean and to legalBEAGLES,

    This will sound flippant, but it isn't.

    What you are describing (what has happened) is, IMVHO, fraud pure and simple.

    If one of us (the hoi polloi) had done something similar, on a more modest scale, we would rightly be tried and imprisoned.

    But then, we're not too big to fail.:colbert:

    Stinks.

    More erudite Beagles will be along! x

    Comment


    • #3
      Re: Tesco shares / fraudulent reporting.

      Thank you.

      My question is then, if this is fraud, would it be likely that a court claim would succeed?

      I envisage Tesco fighting me, expensively.

      The reality is that most people would have avoided their shares if the true picture was known.

      I was certainly deceived.

      Comment


      • #4
        Re: Tesco shares / fraudulent reporting.

        Originally posted by sean5302 View Post
        Thank you.

        My question is then, if this is fraud, would it be likely that a court claim would succeed? I very much doubt it, Sean. the big guys never pay for their transgressions.

        I envisage Tesco fighting me, expensively.

        The reality is that most people would have avoided their shares if the true picture was known. Quite...

        I was certainly deceived.
        As said, Beagles who know the law on this will be along. I'm commenting because I'm with you, absolutely :mmph:.

        Comment


        • #5
          Re: Tesco shares / fraudulent reporting.

          Out of interest, how do you calculate you've lost £5000 since buying the shares? This might be critical to your argument, depending on what you took them to court for.

          Comment


          • #6
            Re: Tesco shares / fraudulent reporting.

            Possibly a class action will be set up here for shareholders who have lost out off the back of the fraudulent accounting. I believe there is a similar action already running in the US.

            I think you would need to evidence that the misstatement was a reason for you investing initially ( ie you invested based on the over stated profits and thus share price etc) If you invested when the accounts were sound, your shares value rose due to the misstatement then fell again due to them being found out, I don't think there would be a case, but if you bought shares when they were up based on the announced profit statements which were then proved to be wrong and your shares fell, you might do.

            It is a complex area and you will need specialist advice.
            #staysafestayhome

            Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

            Received a Court Claim? Read >>>>> First Steps

            Comment


            • #7
              Re: Tesco shares / fraudulent reporting.

              http://www.ibtimes.co.uk/rbs-battle-...-court-1446980

              M1

              Comment


              • #8
                Re: Tesco shares / fraudulent reporting.

                On a different note, my DIL works for Tesco as a supervisor.
                I understand that part of her bonus for meeting targets is rewarded in the way of free shares. Would be interested to know if this current situation would affect her, given that the shares appear to form part and parcel of her salary

                Comment


                • #9
                  Re: Tesco shares / fraudulent reporting.

                  I paid £10,000 for the shares, which I could have sold yesterday for just under £5,000.
                  The share price is now £1.69 compared to the £3.24 I paid.
                  Last edited by sean5302; 25th October 2014, 17:50:PM.

                  Comment


                  • #10
                    Re: Tesco shares / fraudulent reporting.

                    Originally posted by Wombats View Post
                    Out of interest, how do you calculate you've lost £5000 since buying the shares? This might be critical to your argument, depending on what you took them to court for.
                    I paid £10,000 for the shares, which I could have sold yesterday for just under £5,000.
                    The share price is now £1.69 compared to the £3.24 I paid.

                    Comment


                    • #11
                      Re: Tesco shares / fraudulent reporting.

                      When did you buy them? Dec 2013?
                      #staysafestayhome

                      Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                      Received a Court Claim? Read >>>>> First Steps

                      Comment


                      • #12
                        Re: Tesco shares / fraudulent reporting.

                        Originally posted by Amethyst View Post
                        When did you buy them? Dec 2013?
                        April 2014
                        TSCO LSE 3080 324.614 168.75*** -155.86 9,998.11 5,197.50 -4,800.61 -48.02

                        Comment


                        • #13
                          Re: Tesco shares / fraudulent reporting.

                          And when was their overstatement made?
                          #staysafestayhome

                          Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                          Received a Court Claim? Read >>>>> First Steps

                          Comment


                          • #14
                            Re: Tesco shares / fraudulent reporting.

                            Originally posted by Amethyst View Post
                            And when was their overstatement made?
                            Dave Lewis, the new ex_Unilever CEO, said yesterday that the "accounting errors" seem to have been made for several years.
                            I referred to the 2013 annual accounts, which are now clearly false. They declare profits not realised.

                            Comment


                            • #15
                              Re: Tesco shares / fraudulent reporting.

                              As said before it is complex, but sounds like you could have a case considering the timings, BUT you would need formal legal advice on this. Slater & Gordon seem to be looking into it if you have a nosey on their website, but I think their fees might be quite bonkers in comparison to the amounts you are talking about unless they work on a CFA. Small claims track....you could feasibly do it yourself but it isn't something we have the experience of dealing with to be able to be much assistance to you.
                              #staysafestayhome

                              Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                              Received a Court Claim? Read >>>>> First Steps

                              Comment

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