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Europe's Largest Bankruptcy
This is a settlement for the Bankruptcy lawsuit.
Milan, Italy: (May-02-08) A class action lawsuit was brought against Italian dairy group Parmalat, stemming from the company's collapse in what has been termed Europe's biggest bankruptcy. Sources familiar with the case and resulting negotiations, stated that in a recent development, the company announced that it has reached a settlement agreement. Under the terms of the agreement, Parmalat will pay out stock worth about 24 million euros, an approximate $37.1 million, to resolve the US class action suit. Sources stated that the payout of 10.5 million shares will settle litigation against the company in US District Court in New York.
Additionally, Italy's biggest listed food company will also pay 1 million euros of the cost for notifying class members of the settlement. Sources stated that those who have followed the suit felt that the settlement amount was significantly lower than what was expected. The company stated that the payout removes the issue of the class action suit, which has probably weighed on the stock over time, in return for a nominal payment. [REUTERS: PARMALAT SETTLES CLASS-ACTION SUIT, SHARES RISE]
Published on May-5-08
Additionally, Italy's biggest listed food company will also pay 1 million euros of the cost for notifying class members of the settlement. Sources stated that those who have followed the suit felt that the settlement amount was significantly lower than what was expected. The company stated that the payout removes the issue of the class action suit, which has probably weighed on the stock over time, in return for a nominal payment. [
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