An Italian court has acquitted Bank of America Corp. of charges related to events before April 2002 in a trial of five banks, Dow Jones Newswires reports. The case revolves around the collapse of Parmalat Finanziaria SpA, the Italian dairy conglomerate that collapsed in December 2003 in one of Europe's biggest financial scandals.
An Italian judge ordered BofA to go to trial on allegations that it failed to prevent three former employees from market rigging in connection with Parmalat. The former employees faced charges for vetting a news release issued by Parmalat in 1999 that Italian regulators claim was misrepresentative.
The charges against Charlotte-based BofA (NYSE:BAC) were administrative. Italian law stipulates that a company can be charged for not having proper governance in place to prevent illegal actions.
The other banks ordered to go to trial by Judge Cesare Tacconi were Citigroup Inc. (NYSE:C), Morgan Stanley (NYSE:MWD), Deutsche Bank AG (NYSE:DB) and UBS AB (NYSE:UBS). The banks have denied any wrongdoing.
According to Dow Jones Newswires, the Milan court acquitted BofA of charges related to events before April 2002, because at the time the law that attributes administrative responsibilities to companies wasn't in place yet.
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