SOURCE: Izard Nobel LLP

November 08, 2011 17:29 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Diamond Foods, Inc.

WEST HARTFORD, CT--(Marketwire - Nov 8, 2011) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of California on behalf of purchasers of the securities of Diamond Foods, Inc. ("Diamond" or the "Company") (NASDAQ: DMND) between April 5, 2011, and November 1, 2011, inclusive (the "Class Period").

The Complaint charges that Diamond and certain of its officers and directors violated federal securities laws. On April 5, 2011, Diamond announced that it would acquire the Pringles snack business (the "Acquisition") from The Procter & Gamble Company. Diamond represented that the Acquisition would be completed by December 2011. The Complaint alleges that defendants failed to disclose the following: (i) Diamond was underestimating the ultimate price to be paid to walnut growers; (ii) Diamond was improperly accounting for its cost of sales; (iii) the Company's financial results were overstated; (iv) Diamond lacked adequate internal and financial controls; (v) Diamond's financial statements were materially misleading; and (vi) the Company's statements about Diamond's business, operations, and timetable for the Acquisition, lacked a reasonable basis.

On November 1, 2011, Diamond disclosed that the Acquisition would be delayed until the first half of 2012 due to an internal investigation regarding accounting for certain crop payments to walnut growers. On this news, Diamond's shares fell $11.33 to close at $52.79 on November 2, 2011.

If you are a member of the class, you may, no later than January 6, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/diamondfoods/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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