Parmalat Settles U.S. Class-Action Case

MILAN, Italy -- Italy's dairy group Parmalat SpA said Friday it will issue new stock valued at more than $36 million to settle a class-action case against it in the U.S. Southern District Court of New York, The Associated Press reported.

Under the agreement, Parmalat will issue to class members 10.5 million existing shares ''in full satisfaction of any and all claim asserted against it in the class action, worldwide,'' the company said in a statement. Those shares would be valued at $36.8 million at the current market price, the AP reported.

Parmalat will also pay up to 1 million euros ($1.55 million) of the cost of notifying the class members of the settlement, the statement said, the AP reported.

-- NYSSCPA.org News Staff

Posted on 5/2/08