NEW YORK (CN) – The newly reorganized Parmalat SpA lost its bid to prevent shareholders from filing lawsuits against it in U.S. courts, the 2nd Circuit ruled.
When the Italian dairy giant collapsed under the weight of massive fraud, purchasers of Parmalat’s debt and securities sued the bank.
Dr. Bondi, the bank trustee, asked the Southern District Court of New York to stop the proceedings in U.S. courts. The court refused, and Judge Jacobs affirmed the decision, stating that Italian bankruptcy law has not been violated.
“The plaintiffs are not yet creditors of Parmalat,” Jacobs ruled. “Only if the plaintiffs prevail in district court will they become creditors.”