Steinhoff's Former Auditor Deloitte to Pay $85 Million to Settle Certain Claims

Steinhoff said on Monday former auditor Deloitte has agreed to pay $85 million to certain claimants as part of the retailer’s proposed $1 billion global lawsuit settlement plan, and that a company opposing the plan had withdrawn its court application, Reuters reported. The announcement sent Steinhoff’s Johannesburg-listed shares soaring 15.70% to reach their highest in nearly two and a half years, while its primary Frankfurt-listed shares jumped by 18.55% by 1231 GMT. The moves takes the scandal-hit retailer a step closer to a settlement plan proposed in July after an accounting fraud in December 2017 prompted investors to dump its shares and led to a string of top level resignations. Steinhoff said as part of ongoing discussions with related parties, its former auditor Deloitte had agreed to support the company’s proposed global settlement plan and will make an additional payment of up to 70.34 million euros ($85.28 million)to settle some claims “in exchange for certain waivers and releases.” Read more.