Cohen Milstein Sellers & Toll PLLC is pleased to announce that there has been a partial settlement reached in several class action lawsuits pending in Canada and the United States brought on behalf of purchasers of securities in Sino-Forest Corporation (“SFC”) (SNOFF:US). The total settlement is in the amount of CAD $4.2 million (approximately USD $3.9 million). Named plaintiffs in the Canadian class actions, along with Lead Plaintiffs in the U.S. class action, reached the settlement with David J. Horsley, a former officer of SFC, in May 2014 (the “Horsley Settlement”).
On March 30, 2012, SFC obtained creditor protection in Canada under the Companies’ Creditors Arrangement Act (the “CCAA Proceeding”), and the Ontario Superior Court of Justice (the “Ontario Court”) ordered a stay of proceedings against the company and other parties. The CCAA Proceeding was recognized by the United States Bankruptcy Court for the Southern District of New York on February 4, 2013, and subsequently a settlement for CAD $117 million with Ernst & Young was approved by the Ontario Court and recognized by the U.S. Bankruptcy Court.
If approved and recognized, the Horsley Settlement will be funded through the Sino-Forest Canadian class actions and held in escrow for the benefit of the Canadian Class and the U.S. Class. The distribution of the settlement fund will be subject to a further order of the Ontario Court.
The final approval hearing for the Horsley Settlement will take place on July 24, 2014 at 9:00 a.m. (EST), before the Ontario Court. A simultaneous hearing relating to recognition of the final approval order will take place in the U.S. Bankruptcy Court. The Courts will likely be linked by video conference. Objections to the approval of the Horsley Settlement and/or the recognition of that approval in the United States must be filed by July 17, 2014 with the respective courts.
A notice regarding the details of the Horsley Settlement has been sent to class members in the United States and Canada. If you have not received one or if you would like further information on the Horsley Settlement and the SFC class actions, visit:/case-study/sino-forest or contact Richard Speirs of Cohen Milstein Sellers & Toll PLLC at 88 Pine Street, New York, New York 10005, (212) 838-7797.
Cohen Milstein Sellers & Toll PLLC
Richard Speirs, 212-838-7797