Deloitte is facing a class action from Dutch law firm BarentsKrans, which is bringing legal proceedings on behalf of shareholders in Steinhoff International Holdings, owners of Poundland, after the South African company’s share price was hit by news of accounting irregularities
The claim will be conducted in the Netherlands with Steinhoff shareholders from all over the world eligible to participate. It follows announcements by Steinhoff in December last year that its accounts would need to be restated, resulting in the share price plummeting by more than 80%.
The law firm, which is a specialist in mass litigation, said that based on current investigations there are grounds for including Deloitte as a defendant in the case, on the basis the firm has been responsible for auditing the financial statements of Steinhoff and its predecessor entity, Steinhoff International Holdings Ltd for many years.
The case will be funded by Claims Funding Europe, a joint venture company established in 2012 by Maurice Blackburn Lawyers, an Australian plaintiff class action law firm, and the Singapore-based funding firm International Litigation Funding Partners.
Martin Hyde, director of Claims Funding Europe said: ‘For years Steinhoff shareholders were misled about the true financial position of the company and vital information was withheld from the market. The resulting losses suffered by shareholders were enormous and investors who suffered loss are entitled to compensation.’
On 6 December 2017 Steinhoff announced that information concerning ‘accounting irregularities requiring further investigation’ had come to the attention of its Supervisory Board and that its CEO Markus Jooste had resigned with immediate effect.
On 13 December 2017 Steinhoff announced that its 2016 accounts will need to be restated. On 2 January 2018, Steinhoff confirmed that the 2015 and 2016 accounts of its predecessor entity, Steinhoff International Holdings Ltd, will also need to be restated and that ‘the restatement of the financial statements of Steinhoff International Holdings Limited for years prior to 2015 is likely to be required.’
Jan-Willem de Jong, lawyer at BarentsKrans said: ‘The market was completely caught by surprise, which is underlined by the steep decline of Steinhoff’s share price. It is clear that investors have been harmed in a significant way and now it’s time for them to seek compensation.’
Deloitte has been approached for comment.
Report by Pat Sweet
