BofA to stand trial in Parmalat case
An Italian judge has ordered Bank of America to stand trial in connection with the 2003 collapse of Italian dairy company Parmalat SpA.
A judge in Milan has ordered Bank of America Corp. to stand trial for its association with the 2003 collapse of Italian dairy company Parmalat SpA.
The Charlotte, N.C.-based bank was accused of alleged market-rigging by some of its employees, according to published reports.
Judge Cesare Tacconi is set the trial to begin in Milan on January 23, 2008.
If convicted, Bank of America faces up to $6.8 million in fines.
“We believe the evidence will show that the charges against Bank of America are completely unfounded,” Bank of America said in a statement.
Parmalat went bankrupt due to massive debts in 2003 and has since undergone restructuring and relisted on the Milan bourse in 2005.
Last month, four other international banks were ordered to face a trial in Milan for allegedly not taking measures that would have prevented the crimes that led to Parmalat’s failure.
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