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Parmalat Sues Bank of America for $10 Billion - 2004-10-07

The government-appointed administrator for the troubled Italian food company, Parmalat, has filed suit in the U.S. state of North Carolina, seeking $10 billion in damages from Bank of America and its subsidiaries.

The federal district court case is the latest of several filed by administrator Enrico Bondi against financial institutions and auditors he says helped Parmalat executives conceal massive fraud and almost $18 billion debt.

Details of the suit were not immediately available.

The fraud was revealed in December 2003 after the insolvent food giant admitted it did not have nearly $5 billion it had claimed was in a Bank of America account.

Mr. Bondi has also filed billion-dollar suits against Citigroup Bank and Deutsche Bank, as well as former Parmalat auditors Deloitte & Touche and Grant Thornton International.

Wednesday, Italian bank Banca Intesa agreed to pay Parmalat $197 million to avoid litigation.