Fri, Jul 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Investor lawsuit against Paulson & Co. over Sino-Forest loss is dismissed

Wednesday, April 03, 2013

Benedicte Gravrand, Opalesque Geneva: - A Florida federal judge dismissed an investor lawsuit alleging that Paulson & Co. had fail to notice red flags when one of its hedge funds, Paulson Advantage Plus L.P., bought a stake once worth $880m in Sino-Forest Corp, according to several reports yesterday.

An amended order was entered on March 31, 2013, granting Paulson's motion to dismiss the case, Reuters reported. The judge ruled that the investor did not have the standing to sue and claim a fiduciary relationship with Paulson.

Background

In June 2011, a research report by Carson Block of Muddy Waters Research made allegations that Sino-Forest, a commercial forest plantation operator in China listed in Canada, had been fraudulently inflating its assets and earnings, and that the company's shares were essentially worthless. Muddy Waters, which also shorted Sino-Forest shares, made the case that Sino-Forest was no more than a multi-billion dollar Ponzi scheme. Sino Forest’ share price subsequently plummeted by around 82%.

Paulso......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge funds, seeing opportunity, invest in struggling hotels in Puerto Rico[more]

    From NYTimes.com: Puerto Rico’s tourism industry has fallen victim to the island’s struggling economy, hit by one misfortune after another. In March, the San Juan Beach Hotel filed for bankruptcy. This week, the Condado Plaza Hilton was forced to close its casino. But nearly two thousand miles away,

  3. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  4. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  5. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

 

banner