Tesco CEO ‘Shocked’ by $328 Million Profit Overstatement
- Dave Lewis testifying at trial of three former executives
- Accounting fraud became clear within weeks of Lewis starting
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Tesco Plc’s chief executive officer said he was shocked to discover that the company had overstated profit by about 250 million pounds ($328 million) despite asking senior managers to flag any financial challenges as he got to grips with a new job.
Dave Lewis testified Thursday at the London trial of three former Tesco executives accused of the accounting fraud that wiped 2 billion pounds off the grocery chain’s market value. While the 52-year-old Lewis said he was aware of tensions with suppliers and issues surrounding the company’s financial structure, he had no idea profits had been overstated.