Parmalat must defend US investor class-action suit

Class Action News

A Manhattan federal judge has rejected Parmalat SpA's (PLT.MI: Quote, Profile , Research) request to dismiss an investor class-action lawsuit stemming from the company's December 2003 collapse in an accounting scandal.

The ruling is a defeat for the Italian dairy company and Chief Executive Enrico Bondi. Both have been trying to distance themselves from prior management, and are seeking billions of dollars of damages from the company's former bankers.

Parmalat had filed Europe's largest bankruptcy under about 14 billion euros ($19.07 billion) of debt, after uncovering a 4 billion euro ($5.45 billion) hole in its accounts.


In a June 28 ruling, U.S. District Judge Lewis Kaplan concluded that the reorganized Parmalat "expressly agreed" when it emerged from insolvency proceedings in 2005 to assume the old Parmalat's liabilities for fraud alleged by the investors.

"New Parmalat asserts that it did not assume the pre-insolvency acts," Kaplan wrote in a 30-page opinion. "But the issue is not the assumption of acts. It is the assumption of liability for those acts."

Kaplan also rejected Bondi's contention that the investors waited too long after learning of the alleged fraud to file claims, saying procedural developments in the case pushed back the filing deadline.

Stuart Grant, a lawyer for the plaintiffs, in a statement said Kaplan's decision paves the way for a "substantial recovery" against Parmalat. 

Related listings

  • Lawsuit over Scripps' billing of uninsured a class action

    Lawsuit over Scripps' billing of uninsured a class action

    Class Action News 06/29/2007

    [##_1L|1227943613.jpg|width="104" height="138" alt=""|_##]A San Diego Superior Court judge has granted class-action status to a lawsuit accusing Scripps Health hospitals of charging exorbitant amounts to uninsured patients who often aren't able to pa...

  • Class-action lawsuit against DIA dismissed

    Class-action lawsuit against DIA dismissed

    Class Action News 06/26/2007

    [##_1L|1258321551.jpg|width="120" height="88" alt=""|_##]Two former employees who claimed their illnesses were caused by mold and fungi exposure at Denver International Airport had their class-action claim dismissed by the Colorado Supreme Court. The...

  • Class Action Filed Against Netlist, Inc.

    Class Action Filed Against Netlist, Inc.

    Class Action News 06/25/2007

    A class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons who purchased or otherwise acquired the common stock of Netlist, Inc. ("Netlist" or the "Company") (NASDAQ: NLST...

Is Now the Time to Really Call a Special Education Lawyer?

IDEA, FAPE, CHILD FIND and IEPs: The Individuals with Disabilities Education Act (IDEA) guarantees all children with disabilities to a free appropriate public education (FAPE). FAPE starts with a school’s responsibility to identify that a child has a disability (Child Find) and create an Individualized Education Program (IEP) to suit the needs of the child.

Forte Law Group is one of only a very few law firms within the state of Connecticut that is dedicated to exclusively representing families and children with special needs.

Parents need to be persistent, dedicated and above all else aware of the many services and accommodations that their child is entitled to under the law. As early as this point within your child’s special education, many parents will often find themselves in the situation asking, “is now the time to really call a special education lawyer?” Here are a few things to consider when asking yourself that question.

Business News

St Peters, MO Professional License Attorney Attorney John Lynch has been the go-to choice for many professionals facing administrative sanction. >> read