European Investors and Dutch Investors’ Association VEB have invited Steinhoff International Holding NV to start a dialogue on how to protect shareholders having incurred damages as a consequence of misleading representations. Their interests warrant protection on account of the plummeting share price of Steinhoff.
European Investors has sent out a letter which notifies the Board and Supervisory Board of Steinhoff of holding them liable for any damages caused by the alleged fraud and misleading statements. Based on the current share price, shareholders have incurred total damages of 12 billion Euro.
Under the Dutch class action system, potential claimants, like European Investors and VEB, have to invite management to discuss the evolving situation prior to taking up legal action.
Management has continued to explain to shareholders ‘no evidence of wrongdoing exists’ and even that it ‘sees itself in a strong position and welcomes the opportunity to formally disprove these allegations’. However, Steinhoff’s press releases of 4, 6 and 7 December basically contain a different message.
European Investors awaits the formal response of Steinhoff on its letter and aims for compensation of losses incurred by Steinhoff’s shareholders. Participation in any legal action by European Investors will be possible against a success fee of 9% with no costs upfront.
Participation in any legal action by European Investors will be possible against a success fee of 9% with no upfront costs.