PracticeAuditDeloitte ordered to pay £66m in Parmalat settlement

Deloitte ordered to pay £66m in Parmalat settlement

US judge orders firm to make ‘initial’ payment

Deloitte Touche Tohmatsu has been
ordered to pay $130m (£66m) as a legal settlement to former audit client,
Italian dairy company, Parmalat by the
end of the week.

The sum is part of the $149m that the auditor last month agreed to pay to
settle lawsuits accusing it of helping former Parmalat management hide debt and
inflate results, that led to it filing for bankruptcy in December 2003.

Judge Denise Cote of the US District Court for the Southern District of New
York ordered Deloitte on Tuesday to make what she termed the ‘initial’ payment,
Reuters
reported.

In exchange, Parmalat and its chief executive, Enrico Bondi, will drop claims
against Deloitte and Dianthus SpA, which operated in Italy under the Deloitte
name until July 2003.

Further reading:

Deloitte settles with Parmalat over investor claims

Deloitte Italy sues Parmalat

Parmalat to claim back billions from banks

Related Articles

KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

5d Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2w Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2w Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

3w Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

2m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

2m Alia Shoaib, Reporter
Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

Audit Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

2m Alia Shoaib, Reporter
Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

Audit Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

2m Alia Shoaib, Reporter