Italian Court Clears 4 Banks Over Parmalat Collapse

Law360, New York (April 18, 2011, 3:12 PM EDT) -- An Italian court on Monday cleared Citigroup Inc., Morgan Stanley, Deutsche Bank AG and Bank of America Corp. of charges that they helped dairy giant Parmalat Finanziaria SpA hide debt from investors in a massive criminal fraud that caused the company’s demise.

Prosecutors had asked the Milan court to fine the banks for failing to put procedures in place that would have prevented the fraud. They also asked the court to seize roughly €120 million ($170.5 million) of the banks' profits. But after a two-year trial,...
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