S.African court okays $1.6 bn payout for Steinhoff claims

A South African court Monday approved a $1.6-billion (1.4-billion-euro) payout by embattled retail giant Steinhoff to settle fraud claims that emerged in 2017.

Tens of thousands of claimants have sought more than $8 billion in compensation after an accounting scandal sent share prices plunging 98 percent.

After years of litigation and negotiation, the High Court sitting in Cape Town agreed to the proposal in a two-page ruling delivered in a 30-minute hearing.

The settlement will cover a portion of each claim, if the claimants withdraw their separate lawsuits.

The clothing and furniture retailer is listed in both Frankfurt and Johannesburg.

Two of Steinhoff’s managers still face trial in Germany.

A court in the Netherlands, where Steinhoff is domiciled, has already approved the company’s settlement plan.