Bank of America Settles Parmalat Litigation for $100 Million in Cash and Noncash

Bank of America Corp. has agreed to pay Parmalat SpA $100 million to settle a lawsuit accusing it of helping the Italian company hide debt and causing its 2003 collapse. Reuters reports that Bank of America, Citigroup, and auditors Deloitte Touche Tohmatsu and Grant Thornton LLP were sued for $10 billion each in the case.

Bank of America said its settlement includes both cash and noncash. In addition, Bank of America will reportedly waive claims it had asserted against Parmalat in U.S. courts and in a bankruptcy court in Parma, Italy, where Parmalat is based.

Deloitte agreed in January 2007 to pay $149 million to settle with Parmalat.

Read the Reuters article