Sino-Forest Corporation (SNOFF)

[candeeman]

Class Action Against Sino

TORONTO, Jun 20, 2011, 2011 (Canada NewsWire via COMTEX) -- The Ontario-based law firms of Koskie Minsky LLP and Siskinds LLP today announced the filing in the Ontario Superior Court of Justice of a proposed class action against Sino-Forest Corp. /quotes/zigman/12284 CA:TRE -18.50% , Sino's senior officers and directors, and certain others. The 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 will seek appointment as the representative plaintiff on behalf of all persons and entities who acquired securities of Sino from May 14, 2007 to June 2, 2011 (the "Class Period").

In the action, it is alleged among other things, that during the Class Period, 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.

Dimitri Lascaris of Siskinds LLP, co-counsel to Labourers, stated that "this case raises some hard and troubling questions about the quality of diligence being performed by some well-compensated fiduciaries upon whom Sino's shareholders relied, and we look forward to establishing in a court of law whether those fiduciaries fell woefully short of the standards that the investing public rightly demands of them."

Kirk Baert of Koskie Minsky LLP, co-counsel to Labourers, added "gatekeepers are paid to protect the investing public, and when they fail in that responsibility, massive harm can result to investors, and the integrity of Canada's capital markets becomes suspect. This hurts not only investors, but it also damages issuers who comply with their disclosure obligations, because it raises their cost of capital."


Source: http://www.marketwatch.com/story/koskie-minsky-llp-and-siskinds-llp-announce-filing-in-ontario-of-a-65-billion-class-action-against-sino-forest-corp-2011-06-20