Paulson Dodges Shareholder Suit Over Sino-Forest Losses

Law360, New York (April 2, 2013, 11:20 PM EDT) -- A Florida federal judge Friday dismissed an investor lawsuit alleging the hedge fund Paulson & Co. overlooked red flags when it acquired a stake once worth $880 million in Sino-Forest Corp., a U.S.-listed Chinese forestry company whose stock later tanked after an accounting scandal was exposed.

U.S. District Judge Marcia G. Cooke dismissed the suit without leave to amend, citing Paulson’s argument that plaintiff Hugh Culverhouse, a Miami-based investor and former federal prosecutor, never directly invested in Paulson & Co. and therefore had no standing to...
To view the full article, register now.