Why Steinhoff investors agreed to extend suspension of legal battle

PUBLISHED: Tue, 02 Apr 2019 17:57:37 GMT

JOHANNESBURG (Reuters) – Steinhoff said on Tuesday investors who were suing the company have agreed to extend the suspension of litigation by six weeks, allowing the crisis-hit retailer time to proceed with its investigations and restructuring.

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Steinhoff said the legal proceedings, which were suspended in October last year, would be further suspended until May 15, 2019.

The lawsuit, brought in the Netherlands, was aimed at compensating investors for the more than 14 billion euros ($16 billion) wiped off Steinhoff’s market value ever since the retailer uncovered accounting irregularities last year.

The lawsuit was brought by a collective group known as VEB/European Investors, Steinhoff. It claimed that certain financial statements, prospectus and press releases issued by the company were incorrect and misleading, the company said.