Chitwood Harley Harnes LLP Announces Certification of a Securities Class Action Lawsuit Against Diamond Foods, Inc.
June 28 2013 - 1:42PM
Business Wire
Chitwood Harley Harnes LLP announces that a “Class” comprised of
investors (individuals and entities) who purchased publicly traded
securities of Diamond Foods, Inc. (“Diamond”) from October 5, 2010
through February 8, 2012 (the “Class Period”) has been certified by
the United States District Court for the Northern District of
California in a lawsuit against Diamond and two of its former
executives (“Defendants”).
The lawsuit claims that Defendants deliberately understated
commodity costs – specifically, the costs of walnuts – by
improperly accounting for payments made to walnut growers. This
understatement of costs increased apparent profits and artificially
inflated Diamond’s share price during a period in which Diamond was
seeking to use its stock to acquire Pringles, a snack chip brand
owned by Procter & Gamble Co. The action alleges that
Defendants’ conduct violated the Securities Exchange Act of 1934.
The Court denied Defendants’ motions to dismiss the claims but has
not ruled on the merits of the claims or the defenses asserted by
either side in the lawsuit (with the exception of having dismissed
claims against Diamond’s auditor).
Those who wish to remain members of the Class do not have to do
anything at this time and will be informed about any claims process
that results from the trial or any proposed settlement. Class
members will be bound by all orders and judgments of the Court.
Class members may exclude themselves from the Class. To do so,
they must mail a written request for exclusion to Diamond Foods,
Inc. Securities Litigation, c/o KCC Class Action Services, P.O. Box
6159, Novato, CA 94948-6159 by September 17, 2013. The request for
exclusion must: (1) state the name and address of the person or
entity requesting exclusion; (2) specify the number and type of
Diamond Foods, Inc. securities purchased and sold from October 5,
2010, through February 8, 2012, and specify the dates of these
purchases and sales; (3) state that the person or entity “requests
exclusion from the Class in the Diamond Foods, Inc. Litigation;”
and (4) be signed by the person or entity requesting exclusion.
Class members who exclude themselves from the Class cannot
participate in any recovery for the Class, and will not be bound by
any court orders or judgments.
The lawsuit is entitled In re Diamond Foods, Inc. Securities
Litigation, Case No. 3:11-cv-05386 WHA. For more information,
including a more detailed Notice, the Class Action Complaint and
the Court’s Order Granting Class Certification, visit
http://classaction.kccllc.net/DiamondFoods or write to Class
Counsel: Chitwood Harley Harnes LLP, c/o Ze’eva Kushner Banks, 1230
Peachtree Street NE, Atlanta, Georgia 30309; Telephone:
1-888-873-3999.
Chitwood Harley Harnes LLPZe’eva Kushner Banks,
1-888-873-3999
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