Pomerantz Law Firm Reminds Shareholders of Diamond Foods, Inc. of Upcoming Deadline - DMND
December 02 2011 - 5:28PM
Shareholders of Diamond Foods, Inc. ("Diamond" or the "Company")
(Nasdaq:DMND) are reminded of the securities class action lawsuit
filed against Diamond and certain of its officers and directors.
The class action (CV 11 5399 RS) filed in the United States
District Court, Northern District of California, is on behalf of
all persons or entities who purchased or otherwise acquired the
securities of Diamond during the period from December 9, 2010
through and including November 4, 2011 (the "Class Period"),
seeking to pursue remedies under the Securities Exchange Act of
1934 (the "Exchange Act"). This class action is brought under
Sections 10(b) and 20(a) of the Exchange Act, 15 U.S.C. Sections
78j(b) and 78t(a); and SEC Rule 10b-5 promulgated thereunder by the
SEC, 17 C.F.R. Section 240.10b-5.
If you are a shareholder who purchased DMND securities during
the Class Period, you have until January 6, 2012 to ask the Court
to appoint you as lead plaintiff for the class. A copy of the
complaint can be obtained at www.pomerantzlaw.com. To discuss this
action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or
888.476.6529 (or 888.4-POMLAW), toll free, x350. Those who inquire
by e-mail are encouraged to include their mailing address and
telephone number.
The Complaint alleges that, throughout the Class Period,
Defendants made false and/or misleading statements, as well as
failed to disclose material adverse facts about the Company's
business, operations, and prospects. Specifically, Defendants
failed to disclose that: (1) the Company overstated its earnings by
improperly accounting for certain crop payments to walnut growers;
(2) the Company's acquisition of Pringles snack business would be
delayed; (3) that the Company lacked adequate internal and
financial controls; and (4) that, as a result of the foregoing, the
Company's financial results were materially false and misleading at
all relevant times.
On November 1, 2011, after the market closed, the Company
disclosed that the Chairman of the Audit Committee received an
external communication regarding Diamond's accounting for certain
crop payments to walnut growers, which the Company's Audit
Committee is now investigating. As a result, the Company is
delaying the acquisition of the Pringles snack business from The
Procter & Gamble Company for at least six months. On this news,
Diamond shares declined $11.33 per share, or more than 17.6%, to
close at $52.79 per share on November 2, 2011.
On November 3, 2011, The Wall Street Journal reported, among
other things, that the "investigation centers around the timing of
a recent payment to walnut growers for their 2011 crop" and that at
least one of the improper payments is estimated at $50 million. On
this news, Diamond shares declined an additional $6.39 per share or
12% in two consecutive trading sessions, to close at $46.40 per
share on November 4, 2011.
On November 5, 2011, Barron's published an article stating,
among other things, that had the Company "properly booked costs for
fiscal 2011… it would've earned as little as $1.14 a share,"
instead of the reported earnings for the fiscal year ended July
2011 of $2.61 per share, before noncash charges and expenses. On
this news, the stock fell an additional $7.31 per share or nearly
16%, to close at $39.09 per share on November 7, 2011.
The Pomerantz Firm, with offices in New York, Chicago and
Washington, D.C., is acknowledged as one of the premier firms in
the areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L. Pomerantz, known as the dean of the
class action bar, the Pomerantz Firm pioneered the field of
securities class actions. Today, more than 70 years later, the
Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of
fiduciary duty, and corporate misconduct. The Firm has recovered
numerous multimillion-dollar damages awards on behalf of class
members. See www.pomerantzlaw.com.
CONTACT: Rachelle R. Boyle
Pomerantz Haudek Grossman & Gross LLP
rrboyle@pomlaw.com
(MM) (NASDAQ:DMND)
Historical Stock Chart
From Jun 2024 to Jul 2024
(MM) (NASDAQ:DMND)
Historical Stock Chart
From Jul 2023 to Jul 2024