Parmalat ordered to pay Citigroup $364 million
October 20, 2008
by FoodBusinessNews.net Staff
NEW YORK — A New Jersey court has ordered Italian-based dairy company Parmalat to pay $364 million to Citigroup after finding the bank did not aid executives in looting before the company’s collapse in 2003. Parmalat filed for bankruptcy in 2003 and several former executives have faced criminal charges from a probe into its collapse.
Parmalat was seeking $1.92 billion on allegations Citigroup aided and contributed to a breach of fiduciary duty.
"Parmalat continues to believe that Citigroup played an important role in contributing to the financial collapse of the Parmalat Group in December 2003, and it will continue to pursue all legal remedies at its disposal to hold Citigroup accountable for its role including through ongoing Italian criminal proceedings," the dairy company said in a statement.
The decision is subject to review by a bankruptcy court in Parma, Italy, as well as possible further applications to set aside the verdict in trial court. If the applications are denied, the company plans to appeal the decision.