PracticeAccounting FirmsDoubts cast over Parmalat’s £10bn claim

Doubts cast over Parmalat's £10bn claim

Leading academics have cast doubts over Parmalat's ability to secure damages agsinst the US arms of Deloitte and Grant Thornton as part of a £10bn claim against the bankrupt dairy company's former auditors.

Link: Deloitte and Grant Thornton face £5bn Parmalat lawsuit

Yesterday in Chicago, Enrico Bondi, the Parmalat administrator filed a £10bn, 132-page lawsuit against Deloitte Touche Tohmatsu and Grant Thornton International as well as their Italian and US affiliates.

But leading academics in the US claimed Bondi would not succeed in the US claims, the Financial Times reported.

James Cox, professor of corporate and securities law at Duke University in North Carolina, said with respect to the US firms: ‘I think the defence of these cases is likely to be successful: that is, the work done in the US was without any culpable behaviour.’

John Coffee, professor of law at Colombia University in New York, said Bondi would have to show a conspiracy involving the US arms of Deloitte and Grant Thornton while Stella Fearnley, accounting professor at the University of Portsmouth in the UK, also raised doubts that Bondi could succeed with the US claim.

Both Deloitte and Grant Thornton have said they would defend themselves vigorously against the charges.

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