Court dismisses Parmalat claims against Citi

A New Jersey State Superior Court Judge yesterday approved
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,

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

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