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Case Details for "Parmalat"
US court approves settlement in Parmalat class action suit
Italian food group Parmalat has announced that a New York court approved the settlement reached in a class action lawsuit brought by investors following the firm's fraud scandal and bankruptcy in 2003.
According to the terms of the settlement, Parmalat will deliver 10.5 million Parmalat shares as total and final consideration for the settlement, to be issued and delivered within 30 days from when the order becomes final.
Based on the current share price, the total settlement is worth about 15.3 million euros (19.3 million dollars). Parmalat was re-listed on the Milan stock exchange in 2005.
The class action suit -- which brought together individual and institutional investors worldwide in one case so as to speed up and simplify the legal process -- was filed in 2007 in New York as investors initially sought damages and interest of some five billion euros.
Parmalat's collapse in 2003 ranks as one of Europe's biggest financial scandals: more than 14 billion euros went missing from the group's accounts.
The company is still involved in trials stemming from the fraud scandal in Milan and Parma, where the company is based.
In December, Parmalat founder Calisto Tanzi was sentenced to 10 years in prison in Italy.
Posted on:2009-03-04
Company: Parmalat
Class:
Scope: Nationwide
Type of Case: Securities
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