LAWSUITS NEWS & LEGAL INFORMATION
Merrill Lynch, ING Bank, and Banca Monte Parma SPA
This is a settlement for the Bankruptcy lawsuit.
Washington, DC: (Jun-18-07) Parmalat SPA filed suit against Merrill Lynch, ING Bank, and Italy's Banca Monte Parma SPA, related to the dairy group's 2003 failure. The dairy company, which emerged from bankruptcy protection in 2005, reached settlements with the three financial institutions making that a consolidated payout of 72 million euros ($96.5 million).
In addition to criminal proceedings ongoing in Italy, Parmalat is pursuing civil actions in Italy and the United States aimed at recouping losses from the 14 billion euros ($18 billion) insolvency - Europe's largest corporate bankruptcy. Parmalat stated that Merrill Lynch agreed to pay 29 million euros ($39 million), closing all outstanding claims. The dairy company settled suits filed against ING Bank for 8 million euros ($10.72 million) and against Banca Monte Parma SPA for 35 million euros ($46.91 million).
In the United States, Parmalat also has pending damage suits against Bank of America and Grand Thorton and Citigroup. It announced a settlement in January with Deloitte & Touche and Dianthus for $149 million. In addition, criminal proceedings are under way in Milan and Parma, the seat of Parmalat's headquarters. Earlier this month, a Milan judge issued indictments against four international banks, Citigroup Inc., UBS AG, Deutsche Bank AG, and Morgan Stanley, on charges of failing to have procedures in place that would have prevented alleged crimes that contributed to Parmalat's bankruptcy. Thirteen bank employees also were charged with making false statements mostly aimed at rigging the market for Parmalat bonds. The four banks have denied wrongdoing and have defended the actions of their employees. [FORBES: PARMALAT BANKRUPTCY]
Published on Jun-21-07
In addition to criminal proceedings ongoing in Italy, Parmalat is pursuing civil actions in Italy and the United States aimed at recouping losses from the 14 billion euros ($18 billion) insolvency - Europe's largest corporate bankruptcy. Parmalat stated that Merrill Lynch agreed to pay 29 million euros ($39 million), closing all outstanding claims. The dairy company settled suits filed against ING Bank for 8 million euros ($10.72 million) and against Banca Monte Parma SPA for 35 million euros ($46.91 million).
In the United States, Parmalat also has pending damage suits against Bank of America and Grand Thorton and Citigroup. It announced a settlement in January with Deloitte & Touche and Dianthus for $149 million. In addition, criminal proceedings are under way in Milan and Parma, the seat of Parmalat's headquarters. Earlier this month, a Milan judge issued indictments against four international banks, Citigroup Inc., UBS AG, Deutsche Bank AG, and Morgan Stanley, on charges of failing to have procedures in place that would have prevented alleged crimes that contributed to Parmalat's bankruptcy. Thirteen bank employees also were charged with making false statements mostly aimed at rigging the market for Parmalat bonds. The four banks have denied wrongdoing and have defended the actions of their employees. [FORBES: PARMALAT BANKRUPTCY]
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