NEW YORK, March 22 /CNW/ - A multi-national notification program began
today, as ordered by the United States District Court for the Southern
District of New York, to alert investors, brokers, financial institutions, and
other nominees who bought the common stock and/or bonds of Parmalat
Finanziaria S.p.A. and its subsidiaries and affiliates from January 5, 1999
through and including December 18, 2003 about a USD $50 million partial
settlement of a U.S. class action lawsuit about the prices paid for Parmalat
common stock and bonds.
The lawsuit alleges that Parmalat and numerous other defendants
participated in a fraudulent financial scheme, resulting in the understatement
of Parmalat's debt by nearly $10 billion and the overstatement of its net
assets by over $16 billion. Parmalat ultimately filed for bankruptcy, and the
value of its stock and bonds dramatically declined.
Several of the defendants have now agreed to settle the case (Banca
Nazionale del Lavoro S.p.A. (BNL), Credit Suisse Group, Credit Suisse, Credit
Suisse International, and Credit Suisse Securities (Europe) Limited), while
the lawsuit proceeds against Parmalat S.p.A. (the successor to Parmalat
Finanziaria S.p.A.), financial institutions, two auditing firms, and certain
The Court defined "Class members" in the settlement to include all people
and entities who bought Parmalat common stock and/or bonds from January 5,
1999 through and including December 18, 2003, and were damaged thereby,
regardless of where such people live or where they purchased their Parmalat
Notices informing Class members about their legal rights will be mailed,
and are scheduled to appear in publications reaching readers in the United
States, Italy, and around the world, leading up to a hearing in New York on 19
July 2007, when the Court will consider whether to approve the settlement.
In May 2004, the Court appointed the law firms of Cohen, Milstein,
Hausfeld & Toll, P.L.L.C, of Washington, D.C., Grant & Eisenhofer, P.A., of
Wilmington, DE, and Spector Roseman & Kodroff, P.C., of Philadelphia, PA, to
represent the Class. These firms have been litigating this case known as In re
Parmalat Securities Litigation, No. 04 Civ. 0030 (LAK), since that time, and
they negotiated the partial settlement.
Those affected by this settlement may simply await further notice about
how to ask for a payment, or may now exclude themselves from the partial
settlement, or object to the terms of the proposed settlement. The deadline
for exclusions and objections is 19 June 2007.
The money in the settlement fund will not be distributed yet. In part
because the litigation is still proceeding against the remaining defendants,
there is no plan to allocate the money now; thus it is not possible to
determine the amount of Class member payments, or what the average payment
will be on a per share or per bond basis. Payments will depend on the number
of valid claim forms that Class members eventually send in, how many shares of
Parmalat stock they bought or how many bonds they bought, when they bought and
sold them, and the prices they paid.
A neutral Court website has been established at
www.ParmalatSettlement.com, where notices and the Settlement Stipulation may
be obtained. Those affected may also write to Parmalat Notice Administrator,
PO Box 4068, Portland, OR 97208-4068, USA.
For further information:
For further information: Press Only: Class Counsel: Cohen, Milstein,
Hausfeld & Toll, P.L.L.C. Mark S. Willis, 202-408-4606 or Grant & Eisenhofer
P.A. James Sabella, 646-722-8500 or Spector Roseman & Kodroff, P.C. Robert M.
Roseman, 215-496-0300 http://www.ParmalatSettlement.com