San Diego, CA -- (SBWIRE) -- 01/30/2012 -- The Shareholders Foundation announces that a lawsuit was filed for current investors in NASDAQ:DMND shares against certain directors of Diamond Foods, Inc. over alleged breaches of fiduciary duties.
Investors who purchased shares in Diamond Foods, Inc. (NASDAQ:DMND) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The lawsuit by a current investor against Diamond Foods directors over alleged breaches of fiduciary duties comes after a lawsuit was filed against Diamond Foods over alleged Securities Laws Violations by and for shareholders who purchased their DMND shares only between April 5, 2011, and November 1, 2011. According to that complaint the plaintiff alleges that defendants made false and or misleading statements and/or failed to disclose material facts between April 5, 2011 and November 1, 2011.
On November 1, 2011 after the market closed, Diamond Foods issued a press release revising the expected closing date of the previously announced acquisition of the Pringles snack business from The Procter & Gamble Company “following the receipt by the Chairman of the Audit Committee of Diamond’s Board of Directors of an external communication regarding Diamond’s accounting for certain crop payments to walnut growers.” Additionally, Diamond Foods disclosed that Diamond Foods’ Audit Committee decided to perform an investigation of the accounting matter.
The payments were allegedly timed to make 2011 fiscal year costs appear lower than they actually were. One source estimates that the payments were worth as much as $50 million and would have reduced Diamond's operating income by more than 50%, if they had been included in the fiscal year ended July 31, 2011.
Shares of Diamond Foods, Inc. (Public, NASDAQ:DMND) fell from $64.12 per share on Nov. 1, 2011 to $39.09 on Nov. 7, 2011. In fact, NASDAQ:DMND stocks fell from over $92 per share in September 2011 or by more than 70% and traded recently as low as $26.63 per share.
Those who are current long term investors in Diamond Foods, Inc. (NASDAQ:DMND) shares, have certain options and should contact the Shareholders Foundation.
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