SOURCE: Kahn Swick & Foti, LLC

November 10, 2011 22:15 ET

Kahn Swick & Foti, LLC and Partner Former Louisiana Attorney General Remind Investors With Large Financial Interests of Lead Plaintiff Deadline in Lawsuit Against Diamond Foods, Inc. -- DMND

NEW ORLEANS, LA--(Marketwire - Nov 10, 2011) - Kahn Swick & Foti, LLC ("KSF") and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until January 6, 2012 to file lead plaintiff applications in a securities class action lawsuit against Diamond Foods, Inc. ("Diamond") (NASDAQ: DMND), if they purchased the Company's securities between December 9, 2010 and November 4, 2011 (the "Class Period"). The lawsuit was filed in the United States District Court for the Northern District of California.

What You May Do

If you are a Diamond shareholder and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn (lewis.kahn@ksfcounsel.com), toll free, 877-515-1850, or via cell phone any time at 504-301-7900, or KSF Director of Client Relations, Neil Rothstein, Esq. (neil.rothstein@ksfcounsel.com), toll free at 877-694-9510, or via cell phone any time at 330-860-4092. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by January 6, 2012. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. KSF also encourages anyone with information regarding Diamond's conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.

About the Lawsuit

The complaint charges Diamond and certain of its officers and directors with violations of the Securities Exchange Act of 1934. On September 27, 2011, The Wall Street Journal published an article titled "Hidden Flaw in P&G's Diamond Deal," which discussed a $50 million payment the Company made in September 2011 to walnut growers, suggesting that the payment, had it been made during the fiscal year that ended July 31, 2011, would have reduced the Company's fiscal 2011 operating income by $50 million. On November 1, 2011, Diamond announced that the Audit Committee of the Company's Board of Directors was conducting an internal investigation into payments made to walnut growers in September 2011 and the accounting for such payments. In addition, the Company stated that in light of the accounting investigation, the acquisition of P&G's Pringles business scheduled to close in December 2011 would be delayed to mid-2012. On this news, the Company's stock price fell 17% to close at $52.79 per share on November 2, 2011.

Then on November 5, 2011, Barron's Online published an article that discussed in detail the Company's September 2011 "momentum payment" to walnut growers and suggested that the Company may have overstated its fiscal 2011 financial results. On November 7, 2011, following these disclosures, Diamond's stock price fell to a close of $39.09 per share, a 15% decline from its Friday, November 4, 2011 close of $46.40 per share.

About Kahn Swick & Foti, LLC

KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. KSF's lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders.

To learn more about KSF, you may visit www.ksfcounsel.com.

Contact Information

  • Contact:

    Kahn Swick & Foti, LLC
    Lewis Kahn
    Managing Partner
    877-515-1850
    or after hours via cell phone 504-301-7900
    lewis.kahn@ksfcounsel.com
    206 Covington St.
    Madisonville, LA 70447