Speedy Steinhoff class action process needed
The longer it takes to conclude litigation against Steinhoff by shareholders, the less chance there is that shareholders will be able to recover any losses. A Fin24 report says this is according to attorney Alexander Reus of international law firm DRRT.
Reus and other representatives of the International Steinhoff Litigation Group briefed Steinhoff investors on the progress of the SA opt-out class action, which was filed in the Gauteng High Court (Johannesburg) in August 2018. The International Steinhoff Litigation Group is a group of law firms representing Steinhoff shareholders from the US, the Netherlands, Germany and SA.
The SA class action was filed against over 40 defendants including Steinhoff, Deloitte, Absa Bank, Standard Chartered Bank, Commerzbank and PSG Capital, as well former Steinhoff board chair Christo Wiese and former CEO Markus Jooste. This is with the hopes to recover compensation for the shareholder losses of up to €12bn (about R185bn).
Reus and his SA counterpart Zain Lundell of LHL Attorneys are of the view that a global settlement would be beneficial to all shareholders – retail and institutional – as opposed to engaging in competing individual cases being sought by institutional shareholders in the Netherlands or SA.
‘A global solution that treats everyone the same way, will be the light at the end of the tunnel,’ said Reus.
He warned that private actions outside of the South African class action may ‘destroy the potential for any global solution’ and may drive Steinhoff into bankruptcy.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
