Investors sue to get R193 billion
STEINHOFF: SHAREHOLDERS TARGET GIANT COMPANIES PricewaterhouseCoopers to publish a report at end of year.
Standard Chartered and Commerzbank are among companies targeted by investors suing Steinhoff International to recover as much as €12 billion (R193 billion) they claim they lost because of accounting irregularities at the retail giant.
The suit was filed in Johannesburg and seeks class-action status to cover shareholders who bought Steinhoff stock from June 26, 2013, to December 5, 2017, SA lawfirm LHL Attorneys said.
Other businesses with links to Steinhoff including Absa, auditors Deloitte, and Roedl & Partner were also named as co-defendants. Individuals targeted include former Steinhoff chief executive Markus Jooste, former chairperson Christo Wiese, and former chief financial officer Ben la Grange.
Steinhoff plunged more than 90% in December after it said it couldn’t release its financial results and was trying to figure out if there was a €6 billion hole in the balance sheet.
Last month, it won support from creditors to restructure €9.4 billion of debt.
Auditors at PricewaterhouseCoopers are investigating the accounts and aim to publish a report by the end of the year.
A spokesperson for Steinhoff said the company has not received any court papers on the matter. A Commerzbank spokesperson said the lender doesn’t comment on current or potential client relationships.
Standard Chartered, Wiese and lawyers for Jooste and La Grange didn’t reply to e-mails seeking comment. Absa didn’t immediately respond to a request for comment.
Roedl & Partner declined to comment citing confidentiality rules. A Deloitte spokesperson said the auditor hasn’t received any information on this beyond press reports and thus declined to comment.
The suit is backed by Stichting Steinhoff International Compensation Claims, a foundation under Dutch law to organise investors who seek compensation. – Bloomberg
Roedl & Partner declined to comment on matter