Tuesday, September 27, 2011

Fund firms file class action against Sino-Forest

Northwest & Ethical Investments and Comité syndical national de retraite Bâtirente inc. have launched a class action suit against Sino-Forest Corporation.

The suit, which seeks $5.8 billion in damages, was filed on behalf of investors who purchased Sino-Forest shares or notes from 2004 to 2011.

“NEI Investments has a fiduciary duty to protect the interests of our investors and in commencing this action we believe we are acting strongly to uphold the integrity of the investment industry,” said Bob Walker, vice-president, Ethical Funds, NEI Investments in a statement. “In our longstanding history of engaging with companies to promote responsible corporate governance practices, this is the first time NEI Investments has taken this last-resort approach to protect investors.”

“When our members suffer losses in their retirement plan and those losses result from the type of misconduct alleged in the statement of claim, it is our duty to assist in seeking remedies from those who bear responsibility,” added Batirente’s Daniel Simard.

Sino-Forest’s shares have been frozen amidst allegations that the Chinese forestry company exaggerated its revenues and timber holdings in China.

No comments:

Post a Comment