In a decision released February 19, 2016 in Trustees of the
Labourers' Pension Fund v. Sino-Forest Corporation (Re), 2016
ONSC 1156, Justice Morawetz held that a settlement approved between
the former CFO of Sino-Forest Corporation, David Horsley, and
representative plaintiffs did not preclude the pursuit of
disciplinary proceedings against Mr. Horsley by the Chartered
Professional Accountants of Ontario ("CPAO"). The
underlying class action initiated in 2011 concerned allegations of
secondary market securities misrepresentations. Sino-Forest later
filed under the Companies' Creditors Arrangement Act
("CCAA"). In detailed reasons, Morawetz J. found that the
CPAO was not embraced by the defined parties to the class action
settlement, nor did the CPAO proceeding constitute a
"claim" under the related CCAA plan of compromise and
reorganization. A link to the decision is found below:
https://www.canlii.org/en/on/onsc/doc/2016/2016onsc1156/2016onsc1156.html?resultIndex=1
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