Steinhoff accounting scandal – Shareholders can pursue claims for damages
05 Jun 2019
At the end of 2017, Steinhoff International Holding was rocked by an accounting scandal that sent its share price plummeting. Steinhoff shareholders can pursue claims for damages.
We at GRP Rainer Rechtsanwälte can report that it was in December of 2017 that the furniture group Steinhoff admitted to accounting irregularities, triggering a massive slide in its share price. The report by the auditing firm tasked with investigating what happened has since been made available. It states that Steinhoff’s turnover and profits were being artificially inflated for years.
Shareholders experienced a massive drop in the value of their shares. They can now pursue damages claims against Steinhoff, as the Group failed to inform them in due time or in full about the accounting irregularities and mislead them about the intrinsic value of the business. Claims for damages are a possibility for those shareholders who acquired their shares in Steinhoff prior to the ad-hoc announcement on December 5, 2017 regarding irregularities.
The Landgericht Frankfurt has since issued an order to refer the matter and open model case proceedings under the German Capital Markets Model Case Act (KapMuG). Shareholders can join the class action lawsuit against Steinhoff.
Lawyers experienced in company law can offer advice.