Parmalat has reached a settlement to resolve ongoing litigation between the Italian dairy group and Bank of America.

The deal will see Bank of America provide Parmalat with cash payments and the assignment of "certain rights" to the value of US$98.5m.

Parmalat collapsed under debts of EUR14bn (US$19.72bn), the victim of fraud allegedly perpetrated by its former managers.

The company has launched suits in the US and Italy, accusing Bank of America of selling investors Parmalat bonds with full knowledge of the company's financial turmoil.

Bank of America has maintained that these allegations are false.

"No one at Bank of America knew or could have known of the true financial condition of Parmalat. We have defended ourselves vigorously in these cases and are satisfied with this outcome today," the bank said.

Parmalat also emphasised that it was "satisfied" with the agreement, which sent shares in the Italian company up 2.17% to EUR1.88 at 12.17pm (BST) today (29 July).