Following the announcement last week that troubled Italian dairy giant, Parmalat Finanziaria SpA had reached a settlement agreement with the US Securities and Exchange Commission (SEC) over claims that it defrauded investors in the US and artificially inflated its assets, the firm announced that it has filed a lawsuit against Citigroup, which provided it with investment banking services.
The suit, filed in New Jersey, is part of a process aimed at seeking recovery from third parties believed to have played a role in the firm's collapse. Speaking to the CNN news service, attorney for the dairy group, John Quinn explained that:
"Citibank was involved in structuring a series of complex financial transactions to disguise the true debt situation and artificially increase reported cash flows from operations."
In a statement released following the filing of the lawsuit, Citigroup revealed that it had not yet properly reviewed the claims made in the suit, but that:
"Citigroup lost hundreds of millions of dollars as a result of Parmalat's fraudulent conduct, and we will continue to pursue our substantial claims against the company and defend against frivolous claims in search of a deep pocket."
.Tags: Italy | Italy
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