Parmalat must defend US investor class-action suit
Class Action News
A Manhattan federal judge has rejected Parmalat SpA's (PLT.MI: Quote, Profile , Research) request to dismiss an investor class-action lawsuit stemming from the company's December 2003 collapse in an accounting scandal.
The ruling is a defeat for the Italian dairy company and Chief Executive Enrico Bondi. Both have been trying to distance themselves from prior management, and are seeking billions of dollars of damages from the company's former bankers.
Parmalat had filed Europe's largest bankruptcy under about 14 billion euros ($19.07 billion) of debt, after uncovering a 4 billion euro ($5.45 billion) hole in its accounts.
In a June 28 ruling, U.S. District Judge Lewis Kaplan concluded that the reorganized Parmalat "expressly agreed" when it emerged from insolvency proceedings in 2005 to assume the old Parmalat's liabilities for fraud alleged by the investors.
"New Parmalat asserts that it did not assume the pre-insolvency acts," Kaplan wrote in a 30-page opinion. "But the issue is not the assumption of acts. It is the assumption of liability for those acts."
Kaplan also rejected Bondi's contention that the investors waited too long after learning of the alleged fraud to file claims, saying procedural developments in the case pushed back the filing deadline.
Stuart Grant, a lawyer for the plaintiffs, in a statement said Kaplan's decision paves the way for a "substantial recovery" against Parmalat.
Related listings
-
Lawsuit over Scripps' billing of uninsured a class action
Class Action News 06/29/2007[##_1L|1227943613.jpg|width="104" height="138" alt=""|_##]A San Diego Superior Court judge has granted class-action status to a lawsuit accusing Scripps Health hospitals of charging exorbitant amounts to uninsured patients who often aren't able to pa...
-
Class-action lawsuit against DIA dismissed
Class Action News 06/26/2007[##_1L|1258321551.jpg|width="120" height="88" alt=""|_##]Two former employees who claimed their illnesses were caused by mold and fungi exposure at Denver International Airport had their class-action claim dismissed by the Colorado Supreme Court. The...
-
Class Action Filed Against Netlist, Inc.
Class Action News 06/25/2007A class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons who purchased or otherwise acquired the common stock of Netlist, Inc. ("Netlist" or the "Company") (NASDAQ: NLST...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.