The €1.4B Steinhoff Securities Fraud Settlement

[Gunnar Larson]

Check out my new article:
https://litigationfinancejournal.com/the-e1-4b-steinhoff-securities-fraud-settlement/

Steinhoff International Holdings NV recently settled the European Union’s
second largest securities fraud claim, finalizing three years of complex
contentious negotiations. Steinhoff, a Dutch firm with headquarters in
South Africa, once operated over 40 retail brands across 30 countries. At
its pinnacle, Steinhoff was valued at nearly €20B … and then in December
2017, Steinhoff disclosed accounting irregularities and the stock plunged
90%.

BurfordCapital.com recently profiled
<https://www.burfordcapital.com/insights/insights-container/steinhoff-settlement-blogpost/>
the
Steinhoff securities fraud scenario through to this month’s resolution.
Announcement of the securities fraud situation wiped out €12B in share
value, and Steinhoff faced nearly €8B in international legal claims.

As it was not entirely clear if Steinhoff would be operational given the
overall crisis, Burford was brought in to help victims of the securities
fraud debacle recover losses. Burford outlines that settlement negotiations
were forced to employ strategies to overcome conflicts of interest due to
Steinhoff’s overall precarious financial predicament.

Ultimately, Steinhoff’s settlement provides €800M to shareholders who were
defrauded by the faulty accounting practices. Deloitte, which was
Steinhoff’s former auditor, offered an additional €110M in compensation.
Burford highlights recovering 20%+ of its client’s losses, an overall
solution that still allows Steinhoff’s business to operate in the
near-term.
-- 
*Gunnar Larson - xNY.io <http://www.xNY.io> | Bank.org <http://Bank.org>*
MSc
<https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&utm_medium=Search&utm_campaign=MSc-Digital-Currency-North-America&utm_term=blockchain%20unic&gclid=Cj0KCQiAyJOBBhDCARIsAJG2h5ctwwMz0MRbVSk-LaYD-GMU5UgDSw7ynxbGr_a7SkaFAZzJc1-pzxEaAi4NEALw_wcB>
- Digital Currency
MBA
<https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovation-mba-1-5-years-or-3-semesters/>
- Entrepreneurship and Innovation (ip)

G at xNY.io
+1-646-454-9107
New York, New York 10001
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: text/html
Size: 4086 bytes
Desc: not available
URL: <https://lists.cpunks.org/pipermail/cypherpunks/attachments/20220302/ed70e561/attachment.txt>