SOURCE: Shareholders Foundation

Shareholders Foundation

May 30, 2012 09:35 ET

Diamond Foods, Inc. (DMND) Investor Lawsuit Against Directors Over Alleged Wrongdoing Announced by Shareholders Foundation

SAN DIEGO, CA--(Marketwire - May 30, 2012) - The Shareholders Foundation, Inc. announces that a lawsuit was filed by an investor in shares of Diamond Foods, Inc. (DMND) against certain officers and directors of Diamond Foods, Inc. over alleged wrongdoing in connection with Diamond Foods' accounting for certain crop payments to walnut growers.

Investors who are current long-term stockholders in shares of Diamond Foods, Inc. (DMND) have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

The plaintiff 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 November 2011, Diamond Foods disclosed that the Audit Committee of its Board of Directors decided to perform an investigation of the accounting for certain crop payments to walnut growers. The payments were allegedly timed to make 2011 fiscal year costs appear lower than they actually were.

In February 2012, Diamond Foods announced that the Audit Committee concluded that Diamond Foods' financial statements for the fiscal years 2010 and 2011 would need to be restated. Furthermore Diamond Foods also said that its Board of Directors would appoint a new Chief Executive Officer and Chief Financial Officer.

In March, Diamond Foods announced that it appointed two new members to its board of directors and in early May, Diamond Foods said it appointed a new President and CEO.

DMND shares fell from over $90 in September 2011 to as low as under $1 in April 2012.

Those who are current investors in DMND shares have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

Contact Information

  • CONTACT:
    Shareholders Foundation, Inc.
    Trevor Allen
    +1 (858) 779-1554
    mail@shareholdersfoundation.com
    3111 Camino Del Rio North
    Suite 423
    San Diego, CA 92108