Mr. A. Dimitri Lascaris of Siskinds reports
SISKINDS LLP AND KOSKIE MINSKY LLP ANNOUNCE COURT APPROVAL OF $117 MILLION SETTLEMENT WITH ERNST & YOUNG LLP IN SINO-FOREST CLASS ACTION
The Ontario Superior Court of Justice has approved a
$117-million settlement with Ernst & Young LLP in the Sino-Forest Corp. class action. Ernst & Young was Sino-Forest's auditor from Aug.
16, 2007, until its resignation on April 4, 2012. The agreement
provides for Ernst & Young to pay $117-million in settlement of all
claims arising from its dealings with Sino-Forest.
The settlement is the largest settlement by an auditor in Canadian
history, by a large margin, and is one of the largest ever auditor
In approving the settlement, the Ontario Superior Court of Justice
stated in its decision released today, "The Ernst & Young
settlement is fair and reasonable," and it "provides substantial
benefits to relevant stakeholders."
The manner of allocation of the settlement proceeds to class members
will be determined by the court at a later date.
The class action alleges that Sino-Forest, certain of its directors and
officers, auditors, and underwriters misled investors concerning the
business and accounting at the collapsed timber trader. 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.
The Siskinds securities class actions team has offices in London,
Toronto, Montreal and Quebec City. The team, composed of 15 lawyers
admitted to practice in Ontario, Quebec, New York, and the states
of Queensland and Victoria in Australia, acts exclusively for
investors. Siskinds's securities class actions team is complemented by
lawyers in Siskinds's affiliate, Siskinds, Desmeules, based in Quebec
Koskie Minsky LLP, based in Toronto, is one of Canada's leading firms in
the areas of class actions, trade union labour law, employment law,
civil litigation, and pension and benefits. Its class actions team, led
by Kirk Baert, has been a leader in class actions since 1992 and
has prosecuted many of the leading cases in the area.
The litigation continues against Allen T.Y. Chan, W. Judson Martin, Kai
Kit Poon, David J. Horsley, William E. Ardell, James P. Bowland, James
M.E. Hyde, Edmund Mak, Simon Murray, Peter Wang, Garry J. West, BDO
Ltd., Credit Suisse Securities (Canada) Inc., TD Securities Inc.,
Dundee Securities Corp., RBC Dominion Securities Inc., Scotia
Capital Inc., CIBC World Markets Inc., Merrill Lynch Canada Inc.,
Canaccord Financial Ltd., Maison Placements Canada Inc., Credit Suisse
Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith
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