Parmalat investors allowed to press BofA suit

Judge Lewis Kaplan of the U.S. District Court in Manhattan will allow the investors to pursue a claim involving a $300 million loan in December 1999 to Parmalat's Brazilian subsidiary. He also will let them pursue a claim concerning a 2001 change to an insurance policy associated with a loan to Parmalat Venezuela, Reuters says.

The decision involves an amended complaint by the investors, who added new allegations against Charlotte-based BofA (NYSE:BAC) after the judge dismissed their earlier complaint in July.

The original lawsuit was filed on behalf of investors who bought Parmalat securities from 1999 through 2003.

The plaintiffs sought to hold BofA liable for its actions related to a 1999 Parmalat private placement, and to loans backed by funds from private debt placements.

Parmalat, an Italian dairy conglomerate, declared bankruptcy in December 2003. Three of its U.S. affiliates followed suit the following February.

According to Reuters, BofA says it is pleased the judge dismissed some claims and is confident it will prevail on the others. The bank maintains it "believed it was dealing with a strong, honest and profitable company, and had no knowledge of the fraud perpetrated by Parmalat and its senior management."