Tiger Brands Suggests Settlement in Listeriosis Lawsuit

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

The group mentioned, “[This is] part of a strategy for a possible overall resolution of the listeriosis class action.”

Listen/Read: New insights on the listeriosis outbreak directly involving Tiger Brands [Sep 2024]

In early trading on Monday, the group’s stock rose by 1.79%, reaching R307.89.

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

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

The lead reinsurer, QBE Insurance Group Limited, which is mainly responsible for representing Tiger Brands in the class action, has been authorized by the company to direct the insurers’ attorneys to propose settlements to selected individuals.

These individuals fall into the following claimant categories affected by listeriosis attributed 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 from listeriosis caused by ST6; and
• Claimants whose legal dependents in their care contracted listeriosis due to ST6.

The settlement proposal, issued on April 25, 2025, entails a pledge to pay verified or agreed compensatory damages to claimants under Section 61 of the Consumer Protection Act 68 of 2008. This offer is conditional and has been made without admitting any liability, acting as a complete and final settlement of the claims.

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

Implementation of the Offer

The announcement today signifies a crucial milestone and follows initiatives started in February 2025 to provide immediate relief through advance payments to identified claimants with pressing medical needs, as stated by the group.

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

Tiger Brands and the insurers’ attorneys are in dialogue with the plaintiffs’ attorneys to ensure the timely execution of the offer and the swift settlement of verified or agreed compensatory damages.

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

The class action, currently being managed in two phases, remains in the first phase, where the court will decide on liability.

“If Tiger Brands is found liable, the second phase will tackle causation and compensation for eligible claimants.”

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

Trading Update for H1: 2025

In a separate announcement released on Sens, Tiger Brands projected a 15% to 25% increase in headline earnings per share (Heps) for total operations 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 during the same period in 2024.

Tiger Brands is scheduled to announce 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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