Shareholders in Tesco could claim at least £100m in damages following the accounting scandal at the supermarket.
Law firm Stewarts Law, backed by litigation fund Bentham Europe, began soliciting investors to support joint action against Tesco in September 2014, according to the Guardian.
It believes investors lost out tens of millions when the retailer admitted overstating its profits by £250m.
Jeremy Marshall, chief investment officer of Bentham Europe, said: “The prospect of litigation is a necessary consequence of the apparent failure of Tesco’s former management to protect their shareholders from avoidable losses. We hope the company will face up to the seeming failings of previous management and move swiftly to resolve this dispute.”
The move follows the findings by the grocery watchdog that Tesco deliberately delayed payments to boost profits.