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Parmalat to appeal ruling in Citigroup case

Italian dairy group Parmalat plans to appeal a ruling in a case it lost against Citigroup in its fight to get damages related to its 2003 collapse, one of Europe's biggest financial scandals.

Parmalat said in a statement a court in the US state of New Jersey had denied it motions for a new trial and the dismissal of the counterclaims against it.

“Parmalat's case is now proceeding to appeal,” it said. “The company is continuing its efforts to recover for Citigroup's role in Parmalat's collapse.”

It did not elaborate and Parmalat officials could not be immediately reached for comment.

Parmalat lost a case against Citigroup on October 20 when a US jury found it had defrauded the US bank and had to pay $364.2 million in damages.

Parmalat had sought up to $2.2 billion in damages against Citigroup but the bank called itself a victim of Parmalat's fraud and countersued.

Parmalat collapsed in 2003 under €14 billion of debt after finding a 4 billion euro hole in its accounts.

The scandal led to its founder and former chief executive, Calisto Tanzi, being sentenced on Dec. 18 to 10 years in prison for market-rigging. He was described by prosecutors as the “hub, who covered up for everyone.”

Since its collapse, Parmalat has restructured itself and relisted its stock on the Milan exchange. It has also filed dozens of lawsuits against former bankers and auditors to recover damages suffered from its demise. (Reuters)