Court dismisses Parmalat claims against Citi
Citi has won dismissal of most claims in a lawsuit seeking billions of dollars in damages of the 2003 Parmalat collapse
A New Jersey State Superior Court Judge yesterday approved
Citigroup‘s
request to dismiss Parmalat chief executive officer Enrico Bondi’s claims of
fraud, conspiracy, racketeering and unjust enrichment.
Bondi sought $US7bn (?3.5bn) in damages in the case, which is scheduled to go
to trial May 5, claiming Citigroup turned a blind eye to Parmalat’s financial
condition. Under New Jersey’s racketeering law, any recovery might have been
tripled, raising the award to $US21bn,
Bloomberg
reports.
Bondi has sought punitive damages against Citigroup for aiding and abetting
larceny by corrupt insiders at Parmalat and those claims were accepted as part
of the trial.
‘The market fears a similar situation for the other two US lawsuits, against
Bank of America and Grant Thornton, both of which are headquartered in New York
courts, a situation which would further cut expected legal proceeds,’ a
Santander Private Banking analyst in Milan said in a note.
Further reading:
Parmalat trial starts as 50 face fraud charges
Parmalat bank hearings delayed