Judge Dismisses Parmalat Case Against Grant Thornton

A case against Chicago-based Grant Thornton (FY11 net revenue of $1.15 billion), which relates to the 2003 bankruptcy of the Italian dairy company Parmalat, has been dismissed, Bloomberg reported.

U.S. Bankruptcy Judge John Darrah ruled in favor of the accounting firm April 9 in Chicago, citing a dismissal by a previous court, the U.S. District Court in Manhattan, where the judge ruled that the company could not recover damages from a fraud in which it was a willing participant.

Grant Thornton asked the Chicago court to dismiss it rather than send it to state court. Parmalat sought bankruptcy protection in 2003 after an accounting scandal and reorganized in 2005 in Italy. A parallel bankruptcy in the U.S. involved suing Grant Thornton, alleging malpractice, negligent misrepresentation and civil conspiracy.