Judge Allows Parmalat To Target Auditors' Subsidiaries

Law360, New York (March 20, 2006, 12:00 AM EST) -- Italian dairy firm Parmalat SpA has scored a mixed victory in a U.S. court, after a federal judge paved the way for the embattled company to seek some wider, international damages from its former auditors.

The auditors had sought to limit the reach of the lawsuit to the auditors’ Italian subsidiaries, while Parmalat has been banking its financial recovery on winning larger payouts from the firms’ wealthier umbrella affiliates.

Parmalat accused the auditors, Grant Thornton International and Deloitte Touche Tohmatsu, of contributing to its €14 billion...
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