PracticeAuditAuditors settle with Parmalat investors

Auditors settle with Parmalat investors

Grant Thornton and Deloitte agree terms with funds invested in Italian dairy giant

The auditors sued by US investors in Parmalat, the Italian dairy giant that
collapsed in 2003, have settled the claim with payments totalling $15m.

According to
Reuters
documents filed in the Manhattan federal court show Grant Thornton has agreed to
pay $6.5m while Deloitte will pay $8.5m.

A lawyer representing investors, James Sabella of Grant & Eisenhoffer, is
reported by Reuters saying that such a settlement from the big accountancy
networks is a rare event.

Among the claimants were Hermes Focus Asset Management Europe, Cattolica
Partecipazioni, Capital & Finance Asset Management, Societe Moderne des
Terrassements Parisiens and Solotrat, Retuers says.

Deloitte agreed to pay Parmalat $150m in 2007.

Parmalat field for bankruptcy in 2003 while the business was struggling with
around $14bn of debts and after a €4bn hole had been uncovered in on the balance
sheet.

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