SA's top fund managers join Dutch law firm class action against Steinhoff

South African institutions, such as Abax Investments, Allan Gray, and Coronation, have joined a class action run by Dutch law firm BarentsKrans against global retailer Steinhoff. The legal battle aims to recover losses suffered as a result of the collapse in the share price of Steinhoff in December 2017. Martin Hyde, Director of Claims Funding Europe, shed light on the lawsuit in a recent interview with CNBC Africa. Hyde explained that the lawsuit covers Steinhoff shares acquired between 2013 and 2017, highlighting the company's transition from a Johannesburg-listed entity to one listed in Frankfurt. The collapse of the Frankfurt-listed Steinhoff shares marked a significant financial blow to investors. Major South African institutions, including Investec, Allan Gray, Coronation, and Momentum, have placed their trust in BarentsKrans to pursue legal action on their behalf. The decision to pursue the case through the Dutch legal system was made after careful consideration of various jurisdictions, including South Africa and Germany. Hyde emphasized that the involvement of these prominent institutions signifies a significant development in the legal battle against Steinhoff. Additionally, retail investors and individuals not affiliated with these institutions can also join the claim by visiting the designated website. Despite the complexity of the case and the potential for a prolonged legal process, Hyde remains optimistic about reaching a resolution. The choice to proceed with the case in the Netherlands was influenced by the efficiency of the Dutch legal system in handling mass litigation. While the duration of the case remains uncertain, Hyde pointed out that a swift and fair resolution would benefit both the investors and Steinhoff. When questioned about the involvement of the Public Investment Corporation (PIC), Hyde refrained from disclosing specific details but highlighted the significance of other large institutions' decisions to participate in the lawsuit. The absence of the PIC among the clients represented by BarentsKrans does not diminish the impact of the collective legal action taken against Steinhoff. As one of Europe's leading mass litigation law firms, BarentsKrans is prepared for a protracted legal battle with Steinhoff and other defendants. Hyde acknowledged that while the case might extend over several years, the firm is committed to pursuing a favorable outcome. The potential for a resolution largely depends on Steinhoff's response and willingness to engage in constructive dialogue. In conclusion, the class action lawsuit against Steinhoff represents a significant step in holding the company accountable for the financial losses incurred by investors. The involvement of top fund managers and institutional investors underscores the gravity of the legal proceedings initiated by BarentsKrans. The path ahead may be arduous, but the pursuit of justice and financial restitution remains paramount in the quest for accountability.