European investors suspend class action against Steinhoff for another six weeks

Steinhoff announced on Tuesday morning that it had reached an agreement with an investment group suing it and that legal action would again be temporarily halted for six weeks.

Investment group VEB/European Investors sued the embattled multinational retailer in a Dutch court over its financial statements and prospectuses which VEB says are incorrect and misleading.

Steinhoff is domiciled in the Netherlands.

This is the second time that VEB has temporarily suspended its court action.

In an update to shareholders, Steinhoff said that "the suspension will grant Steinhoff time to continue the ongoing restructuring of its business, make further progress with the internal investigations and finalise its 2017 and 2018 financial statements".

"VEB/European Investors agreed to the extension because it further supports the stabilisation of the company, which is in the interests of both the current and former shareholders of Steinhoff."

The suspension will now last until May 15. 

"After the suspension, VEB/European Investors and Steinhoff are both free to continue the legal proceedings or to reach a settlement for affected shareholders through negotiations," said Steinhoff. 

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