Parmalat’s US court case seeking US$2.2bn in damages from Citigroup and Bank of America for the financial institutions’ alleged role in the Italian dairy group’s 2004 collapse has been thrown out.
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According to reports, a federal judge dismissed the Italian dairy company’s lawsuit against Bank of America and Citigroup.
Citigroup was accused by Parmalat’s new management of assisting in the concealment of corrupt activity by former Parmalat executives.
US district court judge Lewis A Kaplan told reporters that “while plaintiffs maintain that some members of the alleged class bought from BoA in private placements, they concede that none of the named plaintiffs themselves did so. This is fatal to the plaintiffs’ argument.”
The order stated that the US court ruling earlier this year made it clear that investors “must show reliance upon a defendant’s own deceptive conduct before that defendant, otherwise a secondary actor, may be found primarily liable.
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By GlobalData“Plaintiffs’ evidence falls well short of that standard.”
Citigroup last month launched a counter-attack on Parmalat, which was later rejected by a New Jersey state judge.
Parmalat has launched dozens of legal cases in Italy and the US. Enrico Bondi, Parmalat’s CEO, has been overseeing the turnaround of the group. He has accused some 50 defendants of helping prior Parmalat management hide debt and inflate results.
Parmalat were not available for comment when contacted by just-food today (12 August).
