Parmalat reaches deal on US class action suit

0 Comments | AFP, May, 2008

MILAN (AFP) — Failed Italian food giant Parmalat said on Friday it had reached a deal with investors who had filed a 'class action' suit against it in a US court.

Parmalat said the settlement of the claim "was in the best interest of shareholders," with press reports saying it was worth about 20 million euros (31 million dollars).

The class action suit -- which brings together claimants in one case so as to speed up and simplify the legal process -- was filed last year in New York as investors sought damages and interest of some five billion euros following Parmalat's collapse in 2003.

The company meanwhile still faces legal action in Italy, with the main trial in Parma currently adjourned until Tuesday.

This trial involves 55 defendants including...