Sino-Forest court approves Ernst & Young's C$117 million settlement

New York, March 20 - Sino-Forest Corp.'s auditor Ernst & Young LLP will pay C$117 million under a settlement approved by the Ontario Superior Court of Justice, according to class counsel Siskinds LLP and Koskie Minsky LLP.

The settlement is the largest by an auditor in Canadian history, the law firms said.

It settles all claims relating to Ernst & Young's dealings with Sino-Forest.

Allocation of the settlement will be decided by the court at a future date.

The class action claims that Sino-Forest, certain of its directors and officers, auditors and underwriters misled investors concerning the business and accounting at the company.

The plaintiffs include the trustees of the Labourers' Pension Fund of Central and Eastern Canada and the trustees of the International Union of Operating Engineers Local 793 Pension Plan for Operating Engineers in Ontario.

Toronto-based Sino-Forest is a commercial forest plantation operator in China. It implemented its plan of compromise and reorganization under the Companies' Creditors Arrangement Act (CCAA) and Canada Business Corporations Act on Jan. 30.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.