Hagens Berman reminds investors that only 25 days remain before the Jan. 6, 2012 lead plaintiff deadline in a case filed against Diamond Foods alleging violations of the federal securities laws.
At the same time, it has intensified its investigation amid Monday’s announcement by the Company that the Audit Committee’s investigation is not expected to be complete until February, and published reports that at least three Walnut growers were told that payments made after Diamond’s July 31 year end were for 2010 crops – not 2011. As a result of the continuing investigation, Diamond will miss filing its financial statements and expects to be told by Nasdaq that it is not incompliance with listing rules.
Investors with over $500,000 in losses who purchased Diamond Foods common stock between Dec. 9, 2010 and Nov. 4, 2011 (the “class period”) are encouraged to contact the firm to discuss participation in the class action as a lead plaintiff.
On November 1, 2011, Diamond Foods announced that it was postponing its acquisition of Pringles, which it had previously told investors would be completed by December 2011. The company postponed the acquisition in order to investigate possible improper accounting of payments to walnut growers.
Since the announcement of the delayed acquisition, DMND common stock has fallen dramatically, from nearly $65.00 per share on November 1, 2011, to less than $30.00 per share on December 1, 2011.
“We will continue to investigate this matter to determine if DMND misled its shareholders regarding the company’s financial condition and future,” said Mr. Kathrein.
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.