Sino-Forest Rebuffs Rumors of Financial Fraud

(Beijing) -- Toronto-listed Sino-Forest Corp. on June 6 dismissed a report by Muddy Waters Research, which accused the forest plantation operator in China of financial fraud.

Sino-Forest said in an exchange filing that the report by Muddy Waters, a Hong Kong-based equity research firm, was false and defamatory, adding that it was reviewing possibilities for legal recourse. PricewaterhouseCoopers was appointed by Sino-Forest to assist with its investigation of the allegations by Muddy Waters. Sino-Forest added that it intends to invite analysts on a tour of its forest plantations in July.