LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP, representing investors of Tesco PLC (“Tesco” or the “Company”) (OTC:TSCDY), has filed a shareholder lawsuit in the United States District Court for the Southern District of New York with an expanded Class Period, including purchasers of Tesco American Depositary Shares (“ADSs”) between January 9, 2014 and October 22, 2014 (the “Class Period”).
Tesco operates as a grocery retailer through stores offering food, groceries, clothing and general merchandise. The Complaint alleges that defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, defendants misrepresented or failed to disclose that: (1) the Company improperly recognized revenue early and delayed accrual of costs; (2) as a result, the Company overstated its profit forecast for fiscal 2015; (3) the Company misrepresented its financial statements and guidance forecasts; and (4), as a result of the foregoing, defendants’ statements about Tesco’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis.
On October 23, 2014, the Company disclosed that an independent investigation by Deloitte had concluded that there was a gross overstatement of profit expectations, and that fraudulent revenue recognition and accounting practices to increase profits had occurred over several reporting periods. As a result of this news, Tesco shares fell $0.52 per share, to a closing price of $8.18 per share on October 23, 2014.
If you are a member of the Class described above, you may move the Court no later than December 22, 2014, to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, or Casey Sadler, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, Toll Free at (888) 773-9224, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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