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Koskie Minsky LLP

Koskie Minsky LLP

Sino-Forest Corporation


Overview

This class action concerns allegations that the public filings of Sino-Forest Corporation (“Sino-Forest”) contained false and/or misleading statements about its business and affairs. It is alleged that Sino-Forest falsely maintained that its financial statements complied with Canadian generally accepted accounting principles (GAAP) and it materially overstated the size and value of its forestry assets, including its holdings in China’s Yunnan province, and its revenue from the sale of those assets. The plaintiffs claim $6.5 billion on behalf of class members.

On June 2, 2011, Muddy Waters Research released a report alleging fraud and that Sino-Forest “massively exaggerates its assets”. Muddy Waters Research claimed to have “smoking gun evidence” of an example of Sino-Forest overstating forestry assets.

On August 26, 2011, the Ontario Securities Commission issued a temporary cease trade order against Sino-Forest, which prohibits all trading in the securities of Sino-Forest in Ontario. The order was initially effective for 15 days, but it has been extended and is currently effective to April 16, 2012.

On November 10, 2011, the Globe and Mail reported that the RCMP had launched a criminal investigation into whether executives of Sino-Forest defrauded Canadian investors.

On March 30, 2012, Sino-Forest Corporation sought and was granted protection from its creditors pursuant to the federal Companies’ Creditors Arrangement Act (CCAA). This is insolvency legislation and the initial order provides for a stay of legal proceedings against the company.

Sino-Forest’s shares were delisted from the TSX on May 9, 2012.

The proposed class of persons in this class action generally includes persons, including non-Canadians, who acquired Sino-Forest securities in Canada between March 19, 2007 and June 2, 2011 and Canadian residents who acquires Sino-Forest securities during that same time period. This includes persons who acquired Sino-Forest notes in these circumstances.

If you are interested in receiving email updates about this class action please complete the Class Action Information Form.

Koskie Minsky LLP and Siskinds LLP represent the plaintiffs in this action.

The current timetable for this action is as follows: 

 Defendants’ responding records for recent proposed amendments:  May 26, 2014
 Plaintiffs’ reply record for recent proposed amendments:  June 9, 2014
 Cross-Examinations to be completed:  July 18, 2014
 Answers to undertakings:  July 31, 2014 
 Refusals motions (if any) to be argued by:  August 29, 2014
 Answers to any refusals ordered answered:  September 22, 2014
 Plaintiffs’ facta:  November 25, 2014
 Defendants’ responding facta:  December 31, 2014
 Reply facta:  January 8, 2015 
 Hearing:   January 12 – 23, 2015 

 

Active



Latest Developments

July 17, 2014

To view the plaintiffs’ book of authorities for fee approval returnable July 24, 2014, click here.

To view the plaintiffs’ book of authorities for settlement approval returnable July 24, 2014, click here.

To view the plaintiffs’ factum for fee approval returnable July 24, 2014, click here.

To view the plaintiffs’ factum for settlement approval returnable July 24, 2014, click here.

To view the plaintiffs’ motion record for fee approval returnable July 24, 2014, click here.

To view the plaintiffs’ motion record for settlement approval returnable July 24, 2014, click here.

June 13, 2014

The plaintiffs obtained a settlement of $4.2 million from David H. Horsley, subject to court approvals. The notice of court approval is available here. The notice of objection is available here.


Important Note: This website is intended to provide general information only. Despite our best efforts, it is not always completely up to date and should not be relied upon to make important legal decisions. This website does not offer legal advice and is not designed to answer questions about your individual situation or entitlement. It does not eliminate the need to obtain independent legal advice. Communications through this website will not be treated as private, privileged or confidential. It does not create a solicitor-client, fiduciary or other relationship. Whether you are a class member or not in a particular class action or not depends upon the court order made in that particular case. This website will be updated from time to time with information as it becomes available.