N.Y. Parmalat Suit Raises Issues For Foreign Debtors

Law360, New York (July 24, 2007, 12:00 AM EDT) -- A June 28 decision in the Southern District of New York allows plaintiffs in a securities fraud action stemming from the demise of the dairy giant Parmalat Finanziaria S.p.A. (“Old Parmalat”) to amend their complaint and sue the successor entity, Parmalat S.p.A. (“New Parmalat”) which reorganized under an Italian court-approved “concordato” or plan of reorganization. In re Parmalat Securities Litigation, —F.Supp.2d—, 2007 WL 1853294, S.D.N.Y., June 28, 2007 (Master Docket 04 MD 1653(LAK).)

Pursuant to the concordato, which was approved by a majority vote of Old...
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