Parmalat Sues Deloitte, Grant Thornton

By Agence France-Presse Bankrupt Italian food group Parmalat has filed an action for damages against its former auditors Deloitte and Grant Thornton over the events that brought about its collapse late last year, the firm said Aug. 18. Parmalat said its special administrator Enrico Bondi filed the action in an Illinois circuit court against both companies and their U.S. and Italian affiliates. According to a judicial source, Parmalat is claiming damages of up to $10 billion. "The action is part of a process through which the extraordinary commissioner, following the approval of Parmalat's industrial and financial restructuring plan, will seek recovery from third parties believed to have played a role in Parmalat's collapse," the company said a statement. Parmalat also confirmed that in the next 15 years it would distribute to its future shareholders 50% of its profits, including proceeds from its legal actions. Bondi last week began a court battle with Bank of America, which he said was complicit in allowing Parmalat to gain access to financing from third parties without making clear the group's financial crisis. Bondi also is suing Deutsche Bank, UBS and Citigroup, which he alleges acted improperly during events that led to the collapse of the food group at the end of last year with a shortfall of about 14.27 billion euros in its accounts. Copyright Agence France-Presse, 2004