Will Martin Lewis/MSE start a Tesco shares damages claim?

ClarkeKent

Just been reading about institutional investors launching a damages claim via a legal firm following Tesco's overstated sales figures in 2013. No doubt there were thousands of MSE private investors caught up in this and SIPP holders too.

http://www.bbc.co.uk/news/business-37820850

Could we see another large claim for private investors with MSE providing a clear pathway rather than third party companies like with PPI if the directors are found guilty and prosecuted?

dunstonh

No doubt there were thousands of MSE private investors caught up in this and SIPP holders too.

I doubt it. You may find up to 10 direct shareholders on the site.

Could we see another large claim for private investors with MSE providing a clear pathway rather than third party companies like with PPI if the directors are found guilty and prosecuted?

There will be no third party companies as we are talking about shares. Not packaged retail products. I think MSE resources would be better spent on more important things helping a wider range of people than a few Tesco shareholders.

grey_gym_sock

well, i'm 1 of the 10 direct tesco shareholders (actually, i'd guess it's a few more, mainly because a fair number of tesco staff will have bought the shares via employee schemes), and i find the idea that some shareholders can sue the company bizarre. because if the company pays out, that is only at the expense of other shareholders. among all tesco shareholders, it's a zero-sum game - or rather, a negative-sum game, when you allow for the legal costs.

suing the relevant top-level managers (some of whom are facing criminal charges) personally would make more sense. presumably it doesn't happen because they don't have enough money to be worth suing.

that is not to say that this legal action won't succeed. just that i don't like the look of it, or want to encourage it.

ClarkeKent

Bentham Europe is a third party company claiming on behalf of the institutions, they also allow large applications 10,000 shares. I am sure this will be trickling down to other legal firms should a prosecution happen.

MSE has 1.5m members, I think there will be more than 10 who are shareholders and bought during the period! Especially in one of the largest retail companies in the UK.
http://www.benthameurope.com/files/faqs---tesco-plc.pdf

There are also over 200,000 Tesco employees in the "Tesco all-employee share scheme" who could well see the benefit of putting Tesco under pressure to make amends.

colsten

Find a no-win-no-fee lawyer who would represent you.

ClarkeKent

colsten wrote: »

Find a no-win-no-fee lawyer who would represent you.

This is what I mean, by MSE adding this to the page below down the line - if it came to be a large PI claim - it would avoid the PPI style lawyers/calls etc
http://www.moneysavingexpert.com/reclaim/?_ga=1.222501214.499710523.1466791958

I'm sure Martin/MSE getting a result even for the 200k Tesco employees in the share scheme would be a deemed "a win"

Ray_Singh-Blue

I'm the second of the 10

No way I'm wasting a moment of life on anything like that. Paid my money, took my chance. Didn't work out, moved on.

ceredigion

I am struggling with the concept of legal proceedings against a company I have a stake in.

redux

ClarkeKent wrote: »

This is what I mean, by MSE adding this to the page below down the line - if it came to be a large PI claim - it would avoid the PPI style lawyers/calls etc
http://www.moneysavingexpert.com/reclaim/?_ga=1.222501214.499710523.1466791958

I'm sure Martin/MSE getting a result even for the 200k Tesco employees in the share scheme would be a deemed "a win"

The shareholders are responsible for the assets and liabilities of the company.

Who could they sue? The company, i.e. ultimately themselves.

Maybe a case can be argued against some directors for misconduct in office, but even that doesn't restore value that doesn't exist.

The concept of limited liability was invented during Victorian times, I believe (though I could be wrong) as a result of railway mania. It's a bit late to complain now that it occasionally has flaws.

ClarkeKent

ceredigion wrote: »

I am struggling with the concept of legal proceedings against a company I have a stake in.

What like claiming PPI from a bank/building society you are a customer of, or a bank you own shares in or perhaps your pension fund does? (Total cost so far to UK banks, over £30bn)

ceredigion

ClarkeKent wrote: »

What like claiming PPI from a bank/building society you are a customer of, or a bank you own shares in or perhaps your pension fund does? (Total cost so far to UK banks, over £30bn)

You paid for PPi:eek: ?, I Never