BusinessBusiness RecoveryDeloitte settles with Parmalat over investor claims

Deloitte settles with Parmalat over investor claims

Firms pays millions to settle investor claims over collapse of Italian diary giant

Deloitte‘s Italian firm has reached a
settlement with Parmalat, and will pay
$149m to cover investor claims which accused the firm of contributing to the
Italian dairy company’s collapse in December 2003.

Enrico Bondi, Parmalat’s chief
executive, accused several businesses and financial institutions of helping the
dairy giant’s former management to inflate financial results.

The company collapsed towards the end of 2003, as a hidden debt of $14bn was
exposed. Nearly a dozen executives were sentenced to serve jail time as a result
of the scandal.

Bondi has obtained more than $700m from litigation brought in the US, and is
seeking with lawsuits against Deloitte Touche Tohmatsu, Bank of America,
Citigroup and Grant Thornton International, of $10bn each.

Parmalat has since re-listed in Milan after a restructuring.

Further reading:

Deloitte Italy sues Parmalat

Parmalat to claim back billions from banks

Deloitte auditors banned over Parmalat work

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

5m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

5m Emma Smith, Managing Editor