logo
Plus   Neg
Share
Email

Citigroup : Italian Court Rejects Parmalat Request For EUR 1.8 Bln Compensation

Citigroup Inc. (C) said that an Italian court rejected a 1.8 billion euros civil claim filed by Parmalat SpA against the bank over the food company's collapse in 2003.

The Milan court dismissed a lawsuit filed against the lender and a number of its former employees in June 2015. The court said the claim was a duplication of a case that was dismissed in New Jersey in 2008 and that it shouldn't be allowed to proceed in Italy.

"Citi is very pleased that the Milan court has reached this decision and, in particular, that it has done so at an early stage of the proceedings, without requiring the parties to incur the considerable expense of a full trial on claims that had already been judicially examined and rejected in the United States," Citigroup said.

Parmalat said in a statement it will appeal the decision.

Parmalat had claimed that Citigroup colluded with Parmalat staff to obtain financing for fraudulent transactions before the foodmaker's collapse in Italy's biggest bankruptcy. The company's founder, Calisto Tanzi, later was convicted of misleading investors. French cheesemaker Groupe Lactalis later purchased the dairy company.

Separately, Citigroup is seeking $431 million from Parmalat for credit not repaid. The bank filed a complaint in a New Jersey court, which ruled in its favor. In 2014, an Italian court said that the sentence of the New Jersey Court was recognized in Italy. Parmalat appealed that ruling and a decision is pending.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Member of Congress have reportedly been told President Donald Trump's administration has reached an agreement to put Chinese telecom giant ZTE Corp. back in business. Reports from the New York Times and Reuters said the deal brokered by the Commerce Department would require ZTE to pay a substantial... Delta Air Lines will resume non-stop flights between the U.S. and India next year, almost a decade after it exited the Indian market. The airline said Thursday that its decision to resume non-stop flights from the U.S. to India follows agreements between the U.S. and the governments of the United Arab Emirates and Qatar to address the issue of government subsidies provided to state-owned carriers. Mortgage rates continued their upward trend this week and hit a seven-year high, even as housing demand remained robust. According to data released Thursday by mortgage finance provider Freddie Mac, the 30-year fixed-rate mortgage rose to 4.66 percent in the week ending May 24, from 4.61 percent in the prior week and 3.95 percent a year ago. This is also the highest level since May 5, 2011.
Follow RTT