Parmalat Fights Putative Class Action

Law360, New York (July 9, 2007, 12:00 AM EDT) -- “New Parmalat,” the company to emerge from bankrupt dairy giant Parmalat SpA under Chapter 11, has asked a judge to stay a putative securities class action until its appeal of that judge's order is resolved.

Parmalat's motion said that given its precarious financial state, “New Parmalat” should be allowed to see the outcome of an appeal that could theoretically win a dismissal of charges against the old company.

“New Parmalat, like any entity newly emerging from reorganization, faces irreparable harm if it must bear these costs...
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