Accountancy firm Deloitte has reached a settlement with investor organization European Investors-VEB about the major fraud scandal at South African furniture giant Steinhoff. According to the parties, how much money is involved cannot yet be released.
It has been agreed with Deloitte in the Netherlands that the firm, together with the South African branch of Deloitte, will make an offer to duped investors. For this, certain conditions must still be met. Further details of the deal are still classified.
Steinhoff, the largest home furnishing store in the world after Ikea, got into financial difficulties several years ago, after an accounting fraud came to light. The stock market value of the company subsequently plummeted and investors went on board for billions.
European Investors-VEB then argued that Deloitte had been negligent in its supervision of the retail group's finances. As a result, Steinhoff's annual accounts would not have provided a fair picture of the situation at the company. Deloitte ultimately accepts no liability in the settlement.
Last summer, Steinhoff himself also came up with a compensation proposal to handle claims worldwide. In total, this involved approximately 1 billion dollars, while the damage suffered by many parties would amount to more than 8 billion dollars. The group reimburses duped investors up to EUR 266 million
I thought there already was an offer and the last few months they have been trying to get everyone to agree on the terms? Am I missing something?
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