The law firm representing investors in a class action against Sino-Forest Corp., Siskinds LLP and Koskie Minsky LLP, announced on Wednesday that the Ontario Superior Court of Justice has approved a $32.5-million settlement with the 11 investment dealers that acted as underwriters for public offerings by the failed firm.
Details of the settlement were announced earlier this year.
See: Big banks to pay $32.5 million to settle Sino-Forest lawsuit by investors
“We believe that this is the largest settlement with a group of underwriters in Canadian history,” said Dimitri Lascaris of Siskinds LLP, in a statement.
The firms involved — Credit Suisse Securities (Canada), Inc., TD Securities Inc., Dundee Securities Corporation, 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 Inc. — served as underwriters in one or more of Sino-Forest’s public offerings of shares and notes
While the settlement resolves claims against Sino-Forest’s underwriters, the litigation continues against certain former officers and directors of the company, and its former auditors.
Sino-Forest collapsed in 2011 amid allegations that it made false claims about its assets, failed to disclose certain transactions, and improperly reported revenues.
The class action was launched that same year, claiming more than $7 billion in damages, and alleging that investors were misled about the company’s business and accounting. Those allegations have not been proven.
Sino-Forest filed for bankruptcy protection in 2012.
“We are pleased to close this chapter of the Sino-Forest litigation,” said Kirk Baert of Koskie Minsky, “but we continue to aggressively pursue the other defendants in this class action, including Sino-Forest, its former officers and directors and its former auditor BDO Ltd.”