Federal judge allows Parmalat suit against Bank of America to proceed

Federal judge allows Parmalat suit against Bank of America to proceed

[JURIST] Judge Lewis A. Kaplan of the US District Court for the Southern District of New York [official website] has ruled that Parmalat [corporate website] can proceed with its lawsuit against Bank of America [corporate website] though he dismissed most of the Italian dairy company's claims. Kaplan granted Bank of America's motion to dismiss [JURIST report] for 10 of the 12 claims put forth by Parmalat [JURIST report] representative Enrico Bondi, and portions of the two other claims. A spokeswoman for Bank of America said the bank was pleased with the ruling, saying the numerous dismissed claims "significantly narrows" the amount that could be awarded in damages. Parmalat filed for insolvency in December 2003, with about $17.3 billion of debt, after realizing there was a massive $4.9 billion discrepancy in its books. Reuters has more.