Tesco shares plummet on overstated profit

Shares in British supermarket chain Tesco fell as much as 11% on Monday after it was revealed that the store overstated its profit expectations by $407 million.

Tesco, Britain's largest supermarket operator, made the announcement as it released its third profit warning this year.

The supermarket chain said it has suspended four senior executives and has launched an investigation headed by Deloitte.

It said the overstatement was due to some commercial income being booked too soon.

"We have uncovered a serious issue and responded accordingly," said Chief Executive Dave Lewis.

Markets were surprised by the news, with Tesco's FTSE 100-listed shares down by double-digits Monday before recovering slightly.