Sino-Forest listed in Canada on the Toronto stock exchange in 1995. In June 2011, it was attacked by short-seller Muddy Waters alleging fraud, prompting a share price collapse. The company set up an independent committee immediately following the report. In August, the committee reported that it was taking longer than first expected owing to the “challenges associated with the sourcing and verification of data in China". Two weeks later, the regulator suspended trading in Sino-Forest's shares, presumably following the results of its own separate investigation. In January 2012, Sino-Forest's investigation concluded that fraud was likely, in March the company filed for bankruptcy protection and its shares were delisted in May. Management was subsequently found guilty of fraud and its auditors of negligence. 

Last updated September 2021

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