Established landmark liability for global audit firms in Parmalat fraud, securing over $110 million for investors
Plaintiff(s):
Foreign institutional investor (lead plaintiff) on behalf of a class of investors
Case type / claims:
Securities fraud class action arising from multi-billion-dollar accounting fraud; claims that global audit firms concealed Parmalat’s true financial condition, contributing to bankruptcy
Defendant(s):
Parmalat, investment banks, Deloitte & Touche, Grant Thornton, other auditors and related parties
Jurisdiction:
U.S. District Court for the Southern District of New York
Year:
Settlements reached through 2008 (key ruling issued 2005)
Outcome:
- Secured more than $110 million in settlements from Parmalat, investment banks, auditors, and other defendants.
- Won a first-of-its-kind ruling holding that global accounting firms can be vicariously liable for the misconduct of their foreign member firms, rejecting Deloitte and Grant Thornton’s affiliate-liability defense.
- Set a major precedent in cross-border audit liability, strengthening investor protections in cases involving multinational accounting networks.
