Tuesday, 14 June 2011

Poyry comments on Sino-Forest class action complaint

Pöyry has commented class action lawsuit filed in Canada in the aftermath of Muddy Waters report on Sino-Forest Corporation. While details in the Muddy Waters report may be self-servingly highlighted, and are vehemently contested by Sino-Forest, many of the points are rigorously argued. Poyry is mentioned several times in the report. The company has provided forest valuations to Sino-Forest.

Nothing in the report hints at any intentional wrongdoing on Poyry's part (something that obviously could have been speculated on), especially as they would have just been asked to provide valuation services on pinpointed assets, but questions on the competence of Beijing office operations might stem, should it become apparent that they should have noticed something fishy. No matter whose argument stands the test of time and legal investigation, the news is not good and serves as a reminder for consultation companies on the risks associated with even 'the simplest of tasks', particularly in China interior.

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