179,000 claims for Ahold compensation
20 September 2006, AMSTERDAM — Dutch investors' association VEB has received 179,101 claims from Ahold shareholders seeking compensation following the major accounting scandal in 2003.
20 September 2006
AMSTERDAM — Dutch investors' association VEB has received 179,101 claims from Ahold shareholders seeking compensation following the major accounting scandal in 2003.
The average shareholder has applied for EUR 618 (USD 784), VEB said on Wednesday. All claims have to be submitted by Friday.
The compensation claims stem from the accounting scandal that almost destroyed the Dutch retail giant. The company's share price plummeted by 63 percent on 24 February 2003 after Ahold announced it had discovered its American subsidiary U.S. Foodservice had overstated its profits by up to USD 800 million.
In addition, it emerged senior Ahold officials had misled investors about whether Ahold owned controlling interests in joint ventures in Brazil, Argentina and Scandinavia. This allowed the company to incorrectly record all the profits from those businesses in its own books.
At that time there were a total of 933 million Ahold shares in circulation.
The supermarket group agreed to pay a EUR 945 million (USD 1.1 billion) settlement in an American court last November to end a class action taken on behalf of disgruntled investors.
[Copyright Expatica News 2006]
Subject: Dutch news