Parmalat, the Italian diary group based in Parma, said in a statement as part of the agreement it would drop all claims against JPMorgan, after the bank’s decision to pay €43 million to end the legal dispute. The decision to pay does not represent any admission of responsibility by the bank, Parmalat underlines.
Before its collapse, Parmalat was Italy’s largest food company, and the fourth largest in Europe. The scandal erupted when a €14 billion euros hole was found in its accounts. Parmalat’s bankruptcy in 2003 was the biggest in European business history, representing 1.5% of Italy’s gross national product.
Four banks have been acquitted in the Parmalat case. JP Morgan, Bank of America, Banco Santander and ABN Amro, which were among the banks providing financial services to Parmalat, were not charged. Neither were several Italian banks, including Capitalia, Unicredito and Intesa-BCI, that had relations with Parmalat at that time. Morgan Stanley is the only one of the foreign banks to have settled allegations of wrongdoing in a civil case with Enrico Bondi, who was in charge of the relisted company and is pursuing for damages and compensation. Two years ago Morgan Stanley agreed to pay €155 million without admitting wrongdoing. JPMorgan agreed to pay €43 million without admitting wrongdoing.