Bank of America
will pay $100 million to settle one of many lawsuits related to
Parmalat, a former dairy company, had been seeking $10 billion from BofA, along with other potential claims against the bank and its employees in Italy. An agreement will now allow a "normalized" business relationship between the two companies in the future.
An assortment of banks, including
have been involved in legal proceedings related to Parmalat's bankruptcy.
A judge in Milan ruled last year that Parmalat could not seek damages against the five banks, which were accused of helping the dairy giant in alleged fraud that led to its collapse. A shareholder suit accusing BofA and Citi of helping Parmalat mislead investors was also tossed out of U.S. federal court in 2008.
"The legal record to date ... makes it clear that no one at Bank of America knew or could have known of the true financial condition of Parmalat," Bank of America said in a statement. "We have defended ourselves vigorously in these cases and are satisfied with this outcome today."
BofA said more details of the agreement will become available after it has been filed in the U.S. District Court for the Southern District of New York, where the case is being heard.