Sino-Forest shareholders settle with Ernst & Young -lawyer

TORONTO Mon Dec 3, 2012 2:20pm EST

TORONTO Dec 3 (Reuters) - Sino-Forest shareholders who are part of a class-action suit have reached a C$117 million ($118 million) settlement with Ernst & Young, the collapsed forestry company's auditor, one of the lawyers representing investors told Reuters on Monday.

Dimitri Lascaris, a partner in Siskinds LLP, said the settlement is "the beginning, not the end" of the suit, which also names Sino-Forest itself, company executives, financial institutions and others. The settlement requires court approval.

Earlier Monday, the Ontario Securities Commission said Ernst & Young is facing allegations that it conducted improper audits of the China-focused forestry company, which collapsed under the weight of fraud allegations.

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