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Bank of America asks federal court to dismiss Parmalat suit

[JURIST] Bank of America announced Thursday that it has asked the US District Court for the Western District of North Carolina to dismiss a lawsuit filed against it by insolvent Italian dairy company Parmalat. Enrico Bondi, who was appointed by the Italian government to administer the company under bankruptcy protection, filed the suit in October seeking $10 billion in damages for the bank's role in the fraud that led to Parmalat's collapse. In its statement, Bank of America said that "It is widely recognized under U.S. law that a company which has participated in a fraud cannot sue other parties to recover damages from that fraud. Because Bondi filed the suit on behalf of Parmalat and because he admits in his own legal papers the vast fraud carried out by Parmalat management, he is barred from bringing the suit. Only creditors and shareholders of the company would have the right to do so." JURIST's Paper Chase has background on the suit. AP has more.

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About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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