Parmalat Proceeds With Suit Against Bank of America (February 1, 2006)
February 1, 2006
Parmalat Proceeds with Suit Against Bank of America (February 1, 2006)
Parmalat Chief Executive Enrico Bondi brought an action against lender Bank of America. Bondi’s allegations include that Bank of America failed to disclose the true state of Parmalat’s affairs, failed to disclose the true interest rates of certain loans, failed to disclose a scheme by a group of corrupt Parmalat executives to loot millions from the dairy company, and structured financial transactions in a way to conceal and facilitate the looting. Additionally, Bank of America allegedly directed Parmalat to issue a press release which misrepresented details of a financial move involving Parmalat’s Brazilian unit, contributing to the dairy company’s financial collapse in 2003. Bank of America moved to be dismissed from the suit; U.S. District Judge Lewis A. Kaplan ruled against the motion, but dismissed most of the civil racketeering claims against Bank of America.