San Diego, CA -- (SBWIRE) -- 05/29/2012 -- Several investors in NASDAQ:DMND shares filed lawsuits against directors of Diamond Foods. The lawsuits allege breaches of fiduciary duties in connection with Diamond Foods’ accounting for certain crop payments to walnut growers.
Investors who are current long-term stockholders of NASDAQ: DMND shares, including those who purchased NASDAQ DMD shares in 2010, 2009, 2008 or earlier, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiffs alleges that the defendants made false and misleading statements, as well as failed to disclose material adverse facts about Diamond Foods’ business, operations and prospects.
In August 2011, Diamond Foods, Inc agreed to merge with Proctor & Gamble’s Pringles division.
However in November 2011 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 its 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.
Then in February 2012 Diamond Foods announced that its Audit Committee of its Board of Directors has substantially completed its investigation of Diamond Foods' accounting for certain crop payments to walnut growers. Diamond Foods said that the Audit Committee has concluded that Diamond Foods' financial statements for the fiscal years 2010 and 2011 will need to be restated. Furthermore Diamond Foods also said that its Board of Directors will appoint a new Chief Executive Officer and Chief Financial Officer.
Shares of Diamond Foods, Inc. (NASDAQ: DMND) dropped from over $37.00 on February 7, 2012 to as low as $22.10 on February 13, 2012.
Later in February Diamond Foods, Inc. announced that The Procter & Gamble Company and Diamond Foods have mutually agreed to terminate Diamond's proposed acquisition of the Pringles business.
In March, Diamond Foods, Inc. announced that its appointed two new members to its board of directors and in early May Diamond Foods, Inc said tis appointed a new President and CEO.
Shares of Diamond Foods, Inc. (NASDAQ: DMND) closed on May 25, 2012 at $21.97 per share, significantly below its current 52weekHigh of $96.13 per share.
Those who are current long term investors in shares of Diamond Foods, Inc. (NASDAQ: DMND) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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