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• May 15, 2008 12:11 pm US/Eastern
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  Opening Statements Begin In Citigroup Trial

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Opening Statements Begin In Citigroup Trial

Parmalat SpA Suing U.S.'s Largest Bank In $7B Negligence Lawsuit

HACKENSACK, N.J. (AP) ― Opening arguments have started in a trial over a $7 billion negligence lawsuit against Citigroup.

The Italian dairy firm Parmalat SpA is suing Citigroup Inc., the largest U.S. bank, accusing it of helping Parmalat insiders in a theft that came to light when an accounting fraud was uncovered. The fraud led to Europe's largest bankruptcy in 2003.

Lawyers began opening arguments Thursday in a state court in Hackensack.

New York-based Citigroup was a financial adviser and investment bank to Parmalat. Citigroup is accused of arranging complex financial transactions to hide Parmalat's massive debt and artificially increase its cash flow.

Citigroup maintains it was victimized by Parmalat, and lost hundreds of millions of dollars in the process.

(© 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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