Kahn Swick & Foti, LLC Announces That The Wall Street Journal Reports Federal Prosecutors Have Opened Inquiry into Payments M...
January 13 2012 - 11:59AM
Business Wire
Kahn Swick & Foti, LLC ("KSF") and KSF partner, the former
Attorney General of Louisiana, Charles C. Foti, Jr., report that
Diamond Foods (Nasdaq: DMND) stock has fallen an additional 13.25%
- falling $4.40 to $28.73 in after-hours trading - following the
publication by The Wall Street Journal, of a headline stating that
federal prosecutors have opened inquiry into DMND walnut payments,
citing sources.
This investigation follows the filing of investors’ class action
lawsuit for those who purchased shares of Diamond Foods between
December 9, 2010 and November 4, 2011. That lawsuit was filed in
the United States District Court for the Northern District of
California.
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. 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 filed against Diamond Foods charges the Company
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 entitled “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. On this news, the Company’s stock price fell 17% to
close at $52.79 per share on November 2, 2011.
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.
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