Parmalat Files Suit Against Citigroup

Parmalat is seeking more than $10 billion in damages from Citigroup Inc. in a lawsuit that accuses the U.S. bank of helping defraud the Italian food firm and its shareholders and creditors of billions of dollars.

The new administration of Parmalat said in the lawsuit that “the top levels” of the world’s leading financial services group played a crucial part in the multibillion-dollar fraud that plunged the company into insolvency in December.

Citigroup declined to comment on the specifics of the suit. But it said it had been the victim of fraud perpetrated by Parmalat.