Faruqi & Faruqi, LLP Announces Investigation of Diamond Foods, Inc. (DMND)
Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and enforcement of federal antitrust laws, is investigating potential wrongdoing at Diamond Foods, Inc. (“Diamond Foods” or the “Company”) (Nasdaq: DMND). Faruqi & Faruqi, LLP seeks to determine whether certain officers and directors at Diamond Foods violated federal securities laws in connection with statements made to the Company’s shareholders.
On November 1, 2011, Diamond Foods announced that it was postponing a potential $2.35 billion acquisition of the Proctor & Gamble subsidiary Pringles to allow the Company to complete an internal accounting investigation. The Company’s press release stated that Diamond Foods’ Audit Committee Chairman received an external communication questioning the timing of certain payments to walnut growers. Allegedly, the payments were timed to make fiscal year 2011 costs appear lower than they actually were. One source estimates that the payments were worth as much as $50 million, or 50% of the Company’s operating income in fiscal year ended July 31, 2011.
On the news, Diamond Foods shares dropped approximately 22% to close at $51.87 per share on November 2, 2011. The Company’s share price continued to decline over the following days, reaching as low as $39.28 per share on November 7, 2011.
If you purchased Diamond Foods securities between April 5, 2011 and November 1, 2011 and you would like to discuss your legal rights, contact us by calling Anthony Vozzolo or Richard W. Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Diamond Food’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
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