SOURCE: Bernstein Litowitz Berger & Grossmann LLP

December 10, 2014 18:44 ET

Bernstein Litowitz Berger & Grossmann LLP Announces Securities Class Action Suit Filed Against Tesco PLC and Certain of Its Officers and Directors, Expanding Class Period Alleged in Related Action Against Tesco PLC

NEW YORK, NY--(Marketwired - Dec 10, 2014) - Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it has filed a securities class action lawsuit on behalf of the Chester County Employees Retirement Fund against Tesco PLC ("Tesco" or the "Company") (OTC: TSCDY), as well as certain of the Company's officers and directors ("Defendants"). The action asserts claims under the Securities Exchange Act of 1934 ("Exchange Act") on behalf of investors in Tesco American Depositary Receipts ("ADRs") during the period of April 17, 2013 through October 22, 2014, inclusive (the "Class Period"). A copy of the Complaint filed in the action, captioned Chester County Employees Retirement Fund v. Tesco PLC, No. 1:14-cv-9757 (S.D.N.Y.), is available on BLB&G's website at www.blbglaw.com

The Complaint expands the class period that was asserted in a related action against Tesco, captioned Irving Firemen's Relief and Retirement Fund v. Tesco PLC, No. 14-cv-8495-RMB (S.D.N.Y.) ("Irving"), which is the first-filed securities class action in this matter and is presently pending before the Honorable Richard M. Berman. Pursuant to the notice published on October 23, 2014 in connection with the filing of the Irving action, as required by the Private Securities Litigation Reform Act of 1995, investors wishing to serve as lead plaintiff are required to file a motion for appointment as lead plaintiff by no later than December 22, 2014. In addition, Judge Berman entered an order on November 25, 2014 stating that motions seeking appointment as lead plaintiff must be filed by December 22, 2014. The filing of the Complaint by BLB&G does not alter that deadline.

The Complaint alleges that beginning on April 17, 2013 and throughout the Class Period, Tesco and certain of its senior executives violated provisions of the Exchange Act by disseminating false and misleading press releases, financial statements, and statements during investor conference calls. As alleged in the Complaint, throughout the Class Period, Tesco and certain of its senior executives misrepresented Tesco's financial results and operations by, among other things, improperly recognizing commercial income and delaying the accrual of costs under the Company's arrangements with its U.K. suppliers. 

On September 22, 2014, Tesco disclosed that the Company had identified a "serious" accounting issue and had overstated profits for the first half of the year by at least £250 million ($400 million) by improperly and prematurely recognizing revenue and delaying accrual of costs. Tesco also disclosed that it had suspended a number of senior executives and announced that it had hired an external auditor to investigate the accounting manipulations. On October 23, 2014, Tesco disclosed that the size of the misstatement was actually at least £263 million ($420 million), that similar improper accounting practices had impacted its reported financial results in prior periods, and that the Company's chairman was resigning. In the wake of these disclosures, Tesco securities have plunged in value, with the Company's ADRs losing over half of their value in the past year. 

The action asserts claims under Section 10(b) of the Exchange Act against the Defendants, and asserts claims under Section 20(a) of the Exchange Act against certain of the Company's officers and directors. 

The deadline for filing a motion for appointment as lead plaintiff is December 22, 2014. Any member of the proposed Class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at avi@blbglaw.com.

Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.

Contact Information

  • CONTACT:
    Avi Josefson
    Bernstein Litowitz Berger & Grossmann LLP
    1285 Avenue of Americas, 38th Floor
    New York, New York 10019
    Telephone: (212) 554-1493