Law firm rallies Tesco investors to join lawsuit

London - A US law firm is asking Tesco shareholders to join a group that wants to bring a lawsuit and seek billions of pounds in compensation for losses relating to the British retailer's overstatement of profit last year.

Tesco said on September 22 it had overstated first-half profit by £250m. It raised that figure to £263m when it published first-half results on October 23.

The overstatement led to a sharp decline in the market value of Britain's biggest retailer, driving its share price down to a 14 year low, and prompted a criminal investigation by Britain's Serious Fraud Office.