LawFuel.com – Reuters reports that a U.S. federal judge ordered Deloitte Touche Tohmatsu to pay $130 million of a legal settlement to Italian dairy company Parmalat by Friday.
The sum is part of the $149 million that the auditor last month agreed to pay to settle lawsuits accusing it of helping prior Parmalat management hide debt and inflate results, leading in Dec. 2003 to Europe’s largest bankruptcy.
Judge Denise Cote of the U.S. District Court for the Southern District of New York ordered Deloitte on Tuesday to make what she termed the “initial” payment.
In exchange, Parmalat and its chief executive, Enrico Bondi, will drop claims against Deloitte and Dianthus SpA, which operated in Italy under the Deloitte name until July 2003.
Best known for its long-life milk, Parmalat collapsed under 14 billion euros ($18.4 billion) of debt after discovering a 4 billion euro ($5.26 billion) hole in its accounts.