BERKELEY, Calif., Jan. 3, 2012 /PRNewswire/ -- Hagens Berman
today reminded investors that only two more days remain before the
Jan. 6, 2012, lead plaintiff deadline
in a securities class action filed against Diamond Foods (NASDAQ:
DMND).
Investors who purchased shares between Dec. 9, 2010, and Nov. 4,
2011 (the "class period"), with losses exceeding
$500,000 are encouraged to call
Partner Reed R. Kathrein at (510) 725-3000 or email the firm at
DMND@hbsslaw.com. You can also contact Hagens Berman online at
www.hbsslaw.com/diamondfoods. Mr. Kathrein has led the firms
investigation, including interviewing growers.
On Nov. 1, 2011, Diamond Foods
announced that it was postponing its acquisition of Pringles, which
it had previously told investors would be completed by Dec. 2011. The company stated that it postponed
the acquisition in order to investigate possible improper
accounting of payments to walnut growers. 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 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 Nov. 4, 2011.
On Nov. 5, 2011, Barron's
published an article stating 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 ending 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.
On Dec. 12, 2011, DMND stock fell
20 percent after the announcement that its internal audit would not
be completed until mid-February.
On Dec. 15, 2011, Diamond Foods
disclosed that it is being investigated by the Securities and
Exchange Commission (SEC), causing Hagens
Berman to deepen its investigation. Diamond Foods has stated
that it will fully cooperate with the SEC investigation.
On the news of the SEC investigation, stocks fell another 5
percent selling at $29.47 per share
by the time the market closed. In Sept., the stock was trading near
$90.00.
Persons with knowledge that may help the investigation are
encouraged to contact the firm. The SEC recently finalized new
rules as part of its implementation of the whistleblower provisions
in the Dodd-Frank Wall Street Reform Bill. The new rules protect
whistleblowers from employer retaliation and allow the SEC to
reward those who provide information leading to a successful
enforcement with up to 30 percent of the recovery.
About Hagens Berman
Seattle-based Hagens Berman
Sobol Shapiro LLP is an investor-rights class-action law firm with
offices in 10 cities including San
Francisco, California where the lawsuit is based. In
addition to investors, the firm represents whistleblowers, workers
and consumers in complex litigation. More about the law firm and
its successes can be found at www.hbsslaw.com. The firm's
securities law blog is at www.meaningfuldisclosure.com.
SOURCE Hagens Berman LLP