Deloitte Agrees to Support Steinhoff’s Proposed Global Settlement Plan

The consulting firm 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as part of the retailer’s proposed $1 billion global lawsuit settlement plan, and that a company opposing the plan had withdrawn its court application. 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 settlement by Deloitte is not in any way an admission of any liability for the losses incurred by Steinhoff and its stakeholders as a result of the accounting irregularities at Steinhoff,” Deloitte said in a separate statement. 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 also said it had reached an agreement with Conservatorium Holdings LLC and certain entities linked to former Steinhoff chairman and second largest shareholder Christo Wiese, which will result in Conservatorium withdrawing the court application.

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