Loading...

Steinhoff lawsuit seeks damages for period not covered in other countries - attorney

Aug 10 2018 17:45
Sibongile Khumalo

A class action lawsuit mounted against Steinhoff [JSE:SBH] will cover damage periods that cannot be covered in other countries, a German legal firm involved in the case said on Friday.

On Wednesday, Johannesburg-based LHL Attorneys filed a request for certification for a class action lawsuit in the South Gauteng High Court, a first step towards what could be one of South Africa's largest-ever corporate class action lawsuits.

According to TILP Litigation, the application is directed against "Steinhoff International Holdings N.V., banks, auditors and former board members and supervisory board members of Steinhoff". 

TILP described the action as an "international loss recovery effort", with law firms and experts from several countries, including the Netherlands and Germany.

The action covers shareholders who bought Steinhoff shares from June 26, 2013 to December 5, 2017.

"The South African class action is an essential element of our joint effort. And the class action can cover damage periods which cannot be covered in other countries," TILP Attorney Maximilian Weiss told Fin24.

It has been reported that the application is seeking to recover up to R190bn of investors' money, which was lost due to accounting irregularities at the furniture conglomerate.

On Friday, a Bloomberg report said Standard Chartered and Commerzbank AG were among companies targeted by investors.

It further stated that other businesses with links to Steinhoff, including Absa and auditors Deloitte and Roedl & Partner were also named as co-defendants, as the shareholders seek to recoup their money.

Individuals targeted include Jooste, ex-chairperson Christo Wiese and former CFO Ben la Grange.

Steinhoff’s accounting scandal came to light in December 2017, leading to Jooste’s abrupt resignation. The scandal has wiped out the value of the once glorious Stellenbosch-headquartered conglomerate.

A PricewaterhouseCoopers probe commissioned by the firm to investigate its finances is expected to be finalised by year end. The probe will determine how far back the irregularities stretched.

Steinhoff shares were at 17:10 trading at R2.22, down 5.13%.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter and Facebook. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

steinhoff  |  markus jooste  |  business fraud  |  lawsuit
NEXT ON FIN24X

 
 
 
 

Company Snapshot

#SAVINGSMONTH

Five of SA's top financial brains, including SARB governor Lesetja Kganyago share their best savings habits.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

I am not in a position to save because:

Previous results · Suggest a vote

Loading...