Tiger Brands Suggests Settlement in Listeriosis Lawsuit

Tiger Brands, a food company listed on the JSE, has acknowledged that the attorneys acting on behalf of its main reinsurer in the listeriosis case have presented a settlement proposal to the plaintiffs’ attorneys.

The company noted, “[This is] part of a strategy aimed at potentially resolving the listeriosis class action.”

Listen/Read: New revelations regarding the listeriosis outbreak directly implicate Tiger Brands [Sep 2024]

In early trading on Monday, the company’s stock saw a rise of 1.79%, reaching R307.89.

During the listeriosis outbreak in 2017 and 2018, 216 lives were lost. In response, a class action was brought against Tiger Brands on behalf of over a thousand individuals after the source of the disease was traced back to the company’s facility in Polokwane.

Read: SA faces an unprecedented listeriosis outbreak, as reported by the UN [Jan 2018]

The primary reinsurer, QBE Insurance Group Limited, which is chiefly responsible for defending against the class action, has, with the approval of Tiger Brands, directed the insurers’ attorneys to propose settlements to certain individuals.

These individuals fall into the following claimant categories affected by listeriosis linked to the ST6 variant of listeria monocytogenes:

• Claimants who contracted (or whose mothers contracted) listeriosis caused by ST6;
• Claimants whose legal breadwinners, on whom they relied, passed away due to listeriosis caused by ST6; and
• Claimants whose legal dependents under their care contracted listeriosis caused by ST6.

The settlement proposal, made on April 25, 2025, includes a commitment to pay claimants’ verified or agreed compensatory damages as specified under Section 61 of the Consumer Protection Act 68 of 2008. This offer is conditional and is presented without admitting liability, serving as a comprehensive and final settlement of the claims.

Details regarding the offer or payments will remain confidential to protect the privacy of the participants in the settlement.

Implementation of the Offer

Today’s announcement represents a crucial milestone and follows efforts initiated in February 2025 to provide interim relief through advance payments to identified claimants with urgent medical needs, as stated by the group.

Tjaart Kruger, CEO, remarked that this demonstrates Tiger Brands’s commitment to work collaboratively with its insurers and their appointed attorneys in pursuing a resolution for the entire class action.

Tiger Brands and the insurers’ attorneys are engaged in discussions with the plaintiffs’ attorneys to ensure the prompt execution of the offer and the settlement of verified or agreed compensatory damages as quickly as possible.

The subsequent steps will involve the plaintiffs’ attorneys communicating the offer to eligible claimants, after which the damages for those who accept the offer will be evaluated. This process is expected to take several weeks, with arrangements for damage assessments to follow thereafter.

The class action, currently being handled in two phases, remains in the first phase, during which the court will determine liability.

“Should Tiger Brands be found liable, the second phase will address causation and compensation for qualifying claimants.”

Tiger Brands has assured that it has adequate product liability insurance coverage suitable for a corporation of its size.

Trading Update for H1: 2025

In a separate statement made on Sens, Tiger Brands projected that headline earnings per share (Heps) for total operations will increase by 15% to 25% for the six months ending March 31, 2025, compared to the previous period.

Heps from continuing operations are anticipated to be between 30% and 40% higher than in the same period of 2024.

Tiger Brands is scheduled to release its interim results for the period ending March 31, 2025, around May 28.

Read: Tiger Brands announces dividend, despite modest revenue growth [Dec 2024]

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