Lawsuits against banks dismissed
From Times Staff and Wire Reports
Bank of America Corp. and Credit Suisse Group won a dismissal of two fraud lawsuits brought by U.S. units of Parmalat Finanziaria, the dairy company that collapsed in Italy’s biggest bankruptcy in 2003.
Bank of America, Credit Suisse and other banks and accounting firms were sued by the administrator for bankrupt Parmalat USA and the litigation trustee for its Farmland Dairies unit, which operates in the U.S.
The American units sought millions of dollars in damages. They claimed that Parmalat’s banks and auditors hid the parent company’s dire financial situation, leading its subsidiaries to incur debt they couldn’t pay.
