Diamond Foods, Inc. Investor files Lawsuit against Directors

Jan. 17, 2012 - PRLog -- A lawsuit was filed for current investors in NASDAQ- DMND shares against certain directors of  Diamond Foods, Inc. over alleged breaches of fiduciary duties.

If you are a current long term investor in Diamond Foods, Inc.  shares, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The lawsuit by a current investor against Diamond Foods directors over alleged breaches of fidcuary duties comes after a lawsuit was filed against Diamond Foods over alleged Securities Laws Violations. The lawsuit against Diamond Foods was filed by and for shareholders who purchased their DMND shares only between April 5, 2011, and November 1, 2011.According to that complaint filed United States District Court for the Northern District of California the plaintiff that the defendants made false and or misleading statements and/or failed to disclose material facts between April 5, 2011 and November 1, 2011.

On November 1, 2011 after the market closed, 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 Diamond Foods’ 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.

Shares of Diamond Foods, Inc. (Public, NASDAQ-DMND) fell from $64.12 per share on Nov. 1, 2011 to $39.09 on Nov. 7, 2011. In fact, NASDAQ- DMND stocks fell from over $92 per share in September 2011 or by more than 70% and traded recently as low as $26.63 per share.

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

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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, 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. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. 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.