Parmalat Damages Agreed

U.S. judge, Lewis A. Kaplan, has ruled that two lawsuits brought by Parmalat Finanziaria SpA bond and share holders and Parmalat SpA CEO Enrico Bondi, can proceed against auditing firm Grant Thornton International in relation to the collapse of Parmalat Finanziaria in 2003.

Speaking in the U.S. District Court for the Southern District of New York in New York City, Kaplan denied motions by Grant Thornton International and its U.S. business, Grant Thornton LLP, that the lawsuits be dismissed concluding that there was sufficient evidence for a jury to establish Grant Thornton’s potential liability. Grant Thornton had argued that as it had no controlling relationship of the Italian business it could not liable.

Parmalat now has to hand over 10.5 million shares to a group of¬†global investors who lost out following the¬†collapse. The company has confirmed that the transfer will take place within 30 days from the final decision. Compensation for damages amounts to 15.4 million euros (1.47 euro per share). Commenting on the 5 year action, Kaplan called the case ”surprisingly complex, expensive and long”.

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