Parmalat’s US court case against Citigroup over the financial institutions alleged role in the Italian dairy group’s 2004 collapse is set to begin.
Citigroup, the first defendant on trial in the US, has been accused by Parmalat’s new management of assisting in the concealment of corrupt activity by former Parmalat executives.
Parmalat is reportedly seeking US$2.2bn in damages from the US bank.
However, Parmalat was unable to confirm this figure as it cannot comment on ongoing or pending court cases, a spokesperson for the dairy giant told just-food.
“We are seeking financial recompense from all parties involved in Parmalat’s financial collapse,” the company confirmed.
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.
However, Citigroup has launched a counter attack and is seeking damages of $699m, claiming that it was a victim of Parmalat’s fraud.
The opening statements in the civil trail, which will take place before a jury, are scheduled to be heard later this week (22 May).
The trial is expected to take at least two months.
