Sino-Forest Corp.
In June 2011, Siskinds LLP, Siskinds Desmeules and Koskie Minsky LLP filed proposed class actions in Ontario and Quebec against Sino-Forest Corp. (“Sino,” TSX: TRE), Sino's senior officers and directors, Sino’s auditors, Ernst & Young LLP, and certain others.
The Ontario class action was filed on behalf of the Labourers' Pension Fund of Central and Eastern Canada, and seeks $6.5 billion in class damages. Labourers seeks to act on behalf of all persons and entities who acquired securities of Sino from March 19, 2007 to June 2, 2011 (the “Class Period”).
The Quebec action is brought on behalf of all Quebec residents who acquired securities of Sino, whether under a prospectus, over the Toronto Stock Exchange, or otherwise, between August 12, 2008 and June 2, 2011. The Quebec action alleges that the defendants materially misstated Sino's assets and results of operations, and thereby misrepresented that Sino's financial statements had been compiled in accordance with generally accepted accounting principles, among other things.
In December 2011, the Ontario Superior Court of Justice heard a motion brought by the clients of Siskinds and Koskie Minsky for carriage of the proposed class action. Two other law firms and their respective clients also brought motions for carriage of the proposed class action. By reasons dated January 6, 2012, the Honourable Justice Paul Perell granted carriage of the lawsuit to Siskinds LLP and Koskie Minsky LLP and their clients.
On March 22, 2012, the Plaintiffs’ in the action brought a motion before The Honourable Justice Perell for an order requiring the defendants to deliver a Statement of Defence and to request a combined hearing of the Leave and Certification motions. In his reasons dated March 26, 2012, The Honourable Justice P. M. Perell ordered that there shall be a ten (10) day combined Leave and Certification motion to be heard in November 2012. The Judge further ordered that no other motions may be brought without leave of the court before the Leave and Certification motion and any Defendant that delivers an affidavit pursuant to section 138.8 (2) of the Ontario Securities Act, in connection with the Leave and Certification motion, shall also deliver a Statement of Defence.
On March 30, 2012 Sino Forest Corporation obtained creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”). The initial order provided for an interim stay of proceedings against Sino Forest. The plaintiffs in this class action have two motions pending before the court that they intend to have heard despite the stay of proceedings. On April 20, 2012, class counsel will appear in the insolvency court to ask the court to lift the stay and permit the plaintiffs’ motions. The first motion is for approval of a litigation funding agreement between the plaintiffs and Claims Funding International (“CFI”). The second motion is for certification for settlement purposes against only Pöyry (Beijing) Consulting Company Limited. This proposed certification arises from a tentative settlement with Poyry. The tentative settlement is limited to Poyry and does not affect the class action against the other defendants, which will continue.
If you purchased Sino securities during the Class Period, please online information form. Your information will be held in strict confidence. By completing the form, you are not retaining Siskinds, nor do you incur any obligations in connection with this lawsuit.
Persons and entities who acquired securities of Sino during the Class Period are encouraged to contact counsel to the Plaintiffs for further information: