Parmalat discussions urged
US banks and auditors accused of contributing to the collapse of Italian dairy giant Parmalat have been ordered to discuss a settlement with the company. It is hoped the ruling, by US federal court judge Lewis Kaplan, will push the case forward - Parmalat still has 12 further damage claims to pursue with firms in Italy.
Kaplan did not name the plaintiffs but, according to a Parmalat statement, the company has pending litigation in the US against Bank of America, Citigroup, Deloitte & Touche and Grant Thornton. Judge Kaplan has adjourned all proceedings until the new year in the hope that a settlement can be reached. News of his decision sent Parmalat's shares up 3% to e2.99.
The company is eager to recover damages from its banks and auditors in both the US and Italy, asserting they were complicit in the $18 billion collapse, which happened in 2003.
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