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European investors suspend lawsuit against Steinhoff

Steinhoff International Holdings NV said Dutch investor rights group VEB has agreed to temporarily suspend the ongoing legal proceedings against the company.

The South African retail chain said the suspension will allow the company to continue its reorganization, make further progress with its investigations and prepare its financial statements.

The standstill will remain in place until April 3, 2019.

"Steinhoff is engaged in a complex reorganization as it restructures its financial liabilities and finalizes investigations and financial statements. This agreement allows us time to focus on completing these tasks in the interests of all stakeholders," said Steinhoff's acting CEO Danie van der Merwe.

The company said VEB and Steinhoff are both free to continue legal proceedings or to reach a settlement for affected shareholders after the suspension is lifted.

In June, VEB filed a lawsuit against an arm of accounting firm Deloitte seeking damages on behalf of Steinhoff shareholders who suffered losses following an accounting scandal at the South African retailer.