BOSTON, Nov. 8, 2011 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com) along with Hausfeld LLP (www.hausfeldllp.com), filed suit today against Diamond Foods, Inc. (NASDAQ: DMND) ("Diamond" or the "Company") and certain of its officers and directors. The lawsuit, captioned Woodward v. Diamond Foods, Inc. et al., is pending in the United States District Court for the Northern District of California.
The lawsuit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, on behalf of investors who purchased or otherwise acquired Diamond's common stock during the period April 5, 2011 through and including November 1, 2011 (the "Class Period").
On November 1, 2011, Diamond announced that it had received a communication from outside the Company questioning the timing of certain payments to walnut growers and therefore was postponing its $2.35 billion acquisition of Pringles, in order to allow Diamond to complete an internal accounting investigation.
The complaint asserts that Diamond, through its officers and directors, made false and misleading statements and omissions regarding the Company's internal financial controls and its accounting for certain payments to crop growers. These statements are alleged to have been materially false and misleading when made because: (i) the Company was suffering from grossly deficient internal controls and therefore was susceptible to accounting fraud; (ii) Defendants failed to disclose the true nature of the payment to walnut growers and the associated accounting irregularities; (iii) the Company's financial statements were inaccurate in numerous material respects; and (iv) Defendants failed to disclose the risks that the lack of internal controls and the improper accounting of payments posed to the proposed Pringles transaction.
Diamond's stock price has dropped approximately $25.00 per share since the November 1, 2011 announcement, erasing over $550 million in market capitalization.
If you are a member of the Class, you may, no later than January 9, 2012, request that the Court appoint you as Lead Plaintiff for the Class. You may contact the attorneys at Block & Leviton to discuss your rights in the case. You may also retain counsel of your choice and you need not take any action at this time to be a class member.
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SOURCE Block & Leviton LLP
