Italy’s High Court Backs Clawback Law

Law360, New York (December 8, 2006, 12:00 AM EST) -- Sticking to its original decision, Italy’s highest court has continued to uphold a controversial law that will enable Parmalat SpA to proceed with legal action against GE Capital Finance and UBS AG.

On Thursday, Italy's Constitutional Court reaffirmed the constitutionality of the so-called clawback law, which allows the embattled dairy giant to seek retribution from companies that it believes contributed to its collapse.

Parmalat founder Calisto Tanzi and 15 other executives have been accused of fraudulent accounting and market-rigging, which resulted in Parmalat suffering a multibillion-dollar...
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