A Manhattan federal judge has rejected Parmalat SpA's request to dismiss an investor class-action lawsuit stemming from the Italian dairy company's December 2003 collapse in an accounting scandal, Reuters reported Monday.
The ruling is a defeat for Chief Executive Enrico Bondi, who is trying to distance the reorganized Parmalat from prior management, and is seeking billions of dollars of damages from the company's former bankers, Reuters reported.
In a June 28 ruling, U.S. District Judge Lewis Kaplan said the reorganized Parmalat "expressly agreed" when it emerged from Europe's largest bankruptcy in 2005 to assume the old Parmalat's liabilities for fraud that the investors alleged, Reuters reported.
Kaplan also rejected Bondi's contention that the investors waited too long after learning of the alleged fraud to file claims against the reorganized Parmalat. He said procedural developments in the case pushed back their filing deadline, Reuters reported.-New York State Society of Certified Public Accountants
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