Bank of America 2005 Annual Report Download - page 167

BANK OF AMERICA CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements—(Continued)
Corporation asserting administrative liability based on an alleged failure to maintain an organizational model sufficient
to prevent the alleged criminal activities of its former employees. Preliminary hearings began on this charge on
February 22, 2006.
The main trial of the market manipulation charges against Messrs. Luzi, Moncada, and Sala began in the Court of
Milan, Italy on September 28, 2005. Hearing dates in this trial are currently set through June 2006. The Corporation is
participating in this trial as a party that has been damaged by the alleged actions of defendants other than its former
employees, including former Parmalat officials. Additionally, pursuant to a December 19, 2005 court ruling, other third
parties are participating in the trial who claim damages against BANA as a result of the alleged criminal violations of
the Corporation’s former employees and other defendants.
Separately, The Public Prosecutor’s Office for the Court of Parma, Italy is conducting an investigation into the
collapse of Parmalat. The Corporation has cooperated, and continues to cooperate, with The Public Prosecutor’s Office
with respect to this investigation. The Public Prosecutor’s Office has given notice of its intention to file charges,
including a charge of the crime of fraudulent bankruptcy under Italian criminal law, in connection with this
investigation against the same three former employees of the Corporation who are named in the Milan criminal
proceedings, Messrs. Luzi, Moncada and Sala.
Proceedings in the United States
On March 5, 2004, a First Amended Complaint was filed in a putative securities class action pending in the U.S.
District Court for the Southern District of New York entitled Southern Alaska Carpenters Pension Fund et al. v. Bonlat
Financing Corporation et al., which names the Corporation as a defendant. The action is brought on behalf of a putative
class of purchasers of Parmalat securities. The First Amended Complaint alleges causes of action against the
Corporation for violations of the federal securities laws based upon the Corporation’s alleged role in the alleged Parmalat
accounting fraud. This action was consolidated with several other putative class actions filed against multiple
defendants, and on October 18, 2004, an Amended Consolidated Complaint was filed. Unspecified damages are being
sought. On July 13, 2005, the court granted in its entirety the motion to dismiss filed by the Corporation, BANA and
Banc of America Securities Limited in the consolidated putative class actions. The court granted the plaintiffs a right to
file a second amended complaint. After the filing of the second amended complaint and the Corporation’s motion to
dismiss such complaint, on February 9, 2006, the court granted the Corporation’s motion to dismiss in part, allowing the
plaintiff to proceed on claims with respect to two transactions entered into between the Corporation and Parmalat. On
February 27, 2006, the Corporation filed its answer to the second amended complaint.
On October 7, 2004, Enrico Bondi filed an action in the U.S. District Court for the Western District of North
Carolina on behalf of Parmalat and its shareholders and creditors against the Corporation and various related entities,
entitled Dr. Enrico Bondi, Extraordinary Commissioner of Parmalat Finanziaria, S.p.A., et al. v. Bank of America
Corporation, et al. (the Bondi Action). The complaint alleges federal and state RICO claims and various state law claims,
including fraud. The complaint seeks damages in excess of $10.0 billion. The Bondi Action was transferred to the U.S.
District Court for the Southern District of New York for coordinated pre-trial purposes with the putative class actions
and other related cases against non-Bank of America defendants under the caption In re Parmalat Securities Litigation.
On August 5, 2005, the U.S. District Court for the Southern District of New York granted the Corporation’s motion
to dismiss the Bondi Action in part, dismissing ten of the twelve counts. After the plaintiff’s filing of a First Amended
Complaint on September 9, 2005, and the Corporation’s motion to dismiss such complaint on January 31, 2006, the court
granted the Corporation’s motion to dismiss in part, allowing the plaintiff to proceed on the previously dismissed claims
with respect to three transactions entered into between the Corporation and Parmalat. On February 10, 2006, the
Corporation filed its answer to the First Amended Complaint and also its request to file counterclaims in the Bondi
Action.
On November 23, 2005, the Official Liquidators of Food Holdings Limited and Dairy Holdings Limited, two entities
in liquidation proceedings in the Cayman Islands, filed a complaint in the U.S. District Court for the Southern District of
New York against the Corporation and several related entities, entitled Food Holdings Ltd, et al. v. Bank of America
Corp., et al. (the Food Holdings Action). The complaint in the Food Holdings Action alleges that the Corporation and
other defendants conspired with Parmalat in carrying out transactions involving the plaintiffs in connection with the
funding of Parmalat’s Brazilian entities, and it asserts claims for fraud, negligent misrepresentation, breach of fiduciary
duty and other related claims. The complaint seeks damages in excess of $400 million. The Food Holdings Action was
consolidated for pretrial purposes with the other pending actions in the In Re Parmalat Securities Litigation matter.
On November 23, 2005, the Provisional Liquidators of Parmalat Capital Finance Limited (PCFL) (who are also the
Official Liquidators of Food Holdings Ltd. and Dairy Holdings Ltd.) filed a complaint against the Corporation and
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