Tesco share price: Director sues grocer over ‘unfair’ dismissal
Tesco (LON:TSCO) faces a legal challenge with former commercial director suing the grocer for alleged unfair dismissal, The Times has reported. The dismissal came amid the accounting scandal in 2014.
Tesco’s share price has slipped marginally lower in London this morning, having given up 0.34 percent to 176.00p as of 08:28 GMT, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.38 percent higher at 7,460.91 points. The group’s shares have lost more than 11 percent of their value over the past year, and are down by nearly 15 percent in the year-to-date.
Ex-director sues Tesco
The Times reported this morning that Kevin Grace, Tesco’s former commercial director, was suing his ex-employer for alleged unfair dismissal. He lost his job when it emerged that the blue-chip supermarket had mis-stated its profits in 2014, and is said to have been accused of gross misconduct and serious negligence in a letter informing him that he had been let go.
Grace meanwhile claims that he was not responsible for the £263-million hole in Tesco’s accounts and that his dismissal was unfair. He is suing the supermarket for more than £600,000 over the loss of his salary and benefits.
Grocer to ‘strongly defend’
“We are aware of this case and intend to strongly defend it, but are not able to comment otherwise,” a Tesco spokesman told the newspaper.
News of the legal challenge comes amid an ongoing trial of three former Tesco executives over 2014’s accounting scandal. Earlier this month, the grocer’s chief executive Dave Lewis told court that he was ‘shocked’ to be told only 19 days after starting his new job that the grocer had misstated its profit forecast.
As of 08:53 GMT, Monday, 13 November, Tesco PLC share price is 176.05p.