Citigroup to be Tried in Parmalat Suit

A New Jersey judge yesterday ruled that Citigroup must stand trial for its role in the collapse of Parmalat SpA. The Italian food company had sued Citigroup for $10 billion alleging it helped former management hide debt and inflate results, leading to what was then Europe's largest bankruptcy. Parmalat also sued Bank of America Corp. which was ordered to stand trial last July. The significance of the case is whether third parties can be held liable for another company's wrongdoing. The Citigroup trial is scheduled to start in May.