Steinhoff's legal woes mount: shareholders to sue for R185-billion
Steinhoff, which has had nearly R190bn wiped off its market valuation since December when accounting irregularities came to light, is facing mounting legal woes with the launch of a class-action lawsuit in Johannesburg.
On Wednesday, a consortium of law firms, acting on behalf of Steinhoff shareholders, applied to the High Court in Johannesburg to launch what will be the biggest class-action lawsuit in SA’s history.
If the application is successful, investors could be seeking damages of more than R185bn, nearly 20 times Steinhoff’s current market capitalisation.
The suit adds to a number of legal actions that have been brought against Steinhoff and related parties in recent months.
Former chairman and major shareholder Christo Wiese is suing the group for damages of R59bn, while class-action suits have also been brought on behalf of shareholders in Germany and the Netherlands.
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