Sino-Forest's Legal Woes Increase
Two Canadian law firms served a statement of claim against Chinese-Canadian forestry company Sino-Forest (TRE.TO) on Wednesday, adding to the pressure on the company as it defends itself against allegations of fraud, Reuters said.
Trading in Sino-Forest was suspended last week. It last traded at $4.81.
Koskie Minsky LLP and Siskinds LLP said they had filed a claim that alleges wrongdoing by Sino-Forest, once the biggest forestry company on the Toronto Stock Exchange, and by several of its senior officers and directors, according to the Reuters report.
The claim also targets Sino-Forest's auditor Ernst & Young LLP, as well as financial institutions that underwrote Sino-Forest's 2009 prospectus offering, it said.
Among other things, the claim alleges misrepresentations in Sino-Forest's public disclosure relating to numerous aspects of its operations, the report said.
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