Deloitte settles with Parmalat over investor claims
Firms pays millions to settle investor claims over collapse of Italian diary giant
Deloitte‘s Italian firm has reached a
settlement with Parmalat, and will pay
$149m to cover investor claims which accused the firm of contributing to the
Italian dairy company’s collapse in December 2003.
Enrico Bondi, Parmalat’s chief
executive, accused several businesses and financial institutions of helping the
dairy giant’s former management to inflate financial results.
The company collapsed towards the end of 2003, as a hidden debt of $14bn was
exposed. Nearly a dozen executives were sentenced to serve jail time as a result
of the scandal.
Bondi has obtained more than $700m from litigation brought in the US, and is
seeking with lawsuits against Deloitte Touche Tohmatsu, Bank of America,
Citigroup and Grant Thornton International, of $10bn each.
Parmalat has since re-listed in Milan after a restructuring.
Further reading:
Parmalat to claim back billions from banks
Deloitte auditors banned over Parmalat work
