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
Parmalat to claim back billions from banks