Litigation partner Bruce Braun was quoted in a Nov. 23, 2009 AmLaw Litigation Daily article titled “Parmalat Shareholders Milk Small Settlements from Auditors.”
The article reported a “meager sum” settlement of $6.5 million between Parmalat shareholders and Grant Thornton International in connection with an accounting scandal that led to Parmalat’s bankruptcy in 2003. As part of the agreement, Grant Thornton was dismissed from the case with prejudice and did not have to pay anything.
“We thought it was a far-fetched claim,” said Braun, who represented Grant Thornton. “I think the settlement shows we were right.”
Parmalat shareholders sued Grant Thornton and Grant Thornton International, along with Deloitte & Touche Tohmatsu and affiliates, which both provided auditing services for Parmalat before financial fraud derailed the company.
As part of the settlement, Deloitte defendants paid $8.5 million. Combined with Grant Thornton International’s settlement, the total $15 million settlement was far from the $138 million first sought by shareholders from all defendants.