A US judge has adjourned a damages lawsuit by Italian dairy firm Parmalat against its former US banks and auditors to the year end to allow parties to sound out the possibility of a settlement, Parmalat said today.
The case involves US bank Citigroup, Bank of America and auditing firms Grant Thornton International and Deloitte & Touche.
Parmalat is seeking at least $10 billion in damages. Parmalat said in a statement that Judge Kaplan of the southern district of New York had "directed the parties in the case to explore settlement."
Parmalat, best known for its long-life milk, filed for insolvency in December 2003 as it collapsed under €14 billion of debt.
The company relisted in Milan in 2005 after a thorough restructuring. On Tuesday, Credit Suisse Group and Italy's Banca Nazionale del Lavoro each agreed to pay $25 million in settlement to a separate class-action lawsuit that investors had filed following Parmalat's collapse.
The banks were the first two to settle in that case, which also involves Citigroup, Bank of America, Deloitte and Grant Thornton.