Deloitte Settles with Parmalat

The Italian dairy conglomerate defaulted on more than $18 billion in debt at the end of 2003, making it the largest bankruptcy in European history.

Deloitte & Touche SpA and Dianthus SpA have agreed to pay $149 million in damages to Parmalat to settle U.S. claims stemming from the collapse of the Italian dairy conglomerate. The parties have also agreed to withdraw all pending actions and allegations between them.

“The settlement follows years of investigation by Parmalat SpA, and extensive civil discovery by the parties in connection with actions pending in the United States, and was facilitated by various judicial and regulatory authorities,” they stated in a joint announcement.

Dianthus operated in Italy under the Deloitte & Touche name until July 2003.

Parmalat defaulted on more than $18 billion in debt at the end of 2003, making it the largest bankruptcy in European history.

According to the Associated Press, the company still has litigation pending against Bank of America and Citigroup, as well as auditor Grant Thornton.

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