Robbins Umeda LLP Expands Investigation of Diamond Foods, Inc.
December 21 2011 - 9:05AM
Business Wire
Shareholder rights firm Robbins Umeda LLP has expanded its
investigation into possible breaches of fiduciary duty and other
violations of the law by certain officers and directors at Diamond
Foods, Inc. (NASDAQ: DMND). Concerned shareholders who would like
more information about their rights and potential remedies can
contact attorney Gregory E. Del Gaizo at (800) 350-6003,
gdelgaizo@robbinsumeda.com, or via the shareholder information form
on the firm's website.
Robbins Umeda LLP's expanded investigation focuses on whether
officials at Diamond Foods breached their fiduciary duties to
shareholders, maintained woefully inadequate controls, and wasted
corporate assets to the detriment of the company and investors. On
December 15, 2011, Diamond Foods disclosed that the company
received a "formal order of investigation" from the United States
Securities and Exchange Commission (the "SEC") following
allegations of serious accounting deficiencies at the company. This
announcement came just days after officials at Diamond Foods missed
the December 12, 2011 deadline to file the company's financial
results for the first quarter of the coming fiscal year.
Furthermore, in an article that appeared in the Wall Street
Journal on December 16, 2011, a spokesman for Proctor & Gamble
intimated for the first time that the company might be
reconsidering its commitment to sell its Pringles business to
Diamond Foods saying, "Our commitment to the transaction is
predicated on the favorable resolution of all these current
investigations."
Since these new facts have emerged, Diamond Foods has become the
focus of renewed public and legal scrutiny. Moreover, these events
have seriously undermined investor confidence and Diamond Food's
business reputation and intrinsic value. After closing as high as
$92.47 per share on September 20, 2011, shares of the company's
stock closed on at just $27.02 per share on December 16, 2011.
Robbins Umeda LLP notes that a potentially appropriate course of
conduct for Diamond Foods shareholders is filing a derivative
action to hold officers and directors accountable for damaging the
company. Remedies commonly sought in derivative actions include
corporate governance reforms designed to prevent future misconduct,
removal of officers or directors whose misconduct injured the
corporation, and monetary payments in the form of damages and
disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested. For more information,
please go to http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/diamond-foods-inc/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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