Ernst & Young to Pay $117.6 Million to Settle Sino-Forest

Ernst & Young LLP has agreed to pay C$117 million ($117.6 million) to settle claims in a Canadian class action suit against Sino-Forest Corp., according to the law firms behind the action.

The class action alleges that Sino-Forest, certain of its directors and officers, auditors and underwriters misled investors concerning the business and accounting at the now insolvent Chinese timber trader, law firms Siskinds LLP and Koskie Minsky LLP said in an e-mailed statement today.

The settlement is the largest by an auditor in Canadian history, the law firms said in the statement.

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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