Gilman Law LLP, a leading national law firm representing investors in securities class action lawsuits, is currently investigating securities fraud allegations against Diamond Foods, Inc. (“Diamond Foods”) and certain of its officers and directors. Recently, an investor class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of investors who purchased Diamond Foods, Inc. stock (NASDAQ: DMND) between April 5, 2011 and November 1, 2011 (“Class Period”). If you wish to take part in this lawsuit, you must contact Gilman Law no later than January 6, 2012 in order to preserve your legal rights.
For over 30 years, Gilman Law has represented investors in all major aspects of securities fraud litigation, including stock manipulation, securities fraud, and shareholder rights violations. The firm is currently offering free legal evaluations to Diamond Foods stockholders who purchased their shares between April 5, 2011 and November 1, 2011. We urge you to contact us today for your free lawsuit evaluation, and to obtain more information regarding the Diamond Foods, Inc. shareholder class action lawsuit.
Diamond Foods, Inc. Class Action Lawsuit Allegations
Diamond Foods, Inc. engages in processing, marketing, and distributing snack products, including roasted, glazed and flavored nuts, trail mixes, dried fruit, seeds, microwave popcorn products, and potato and tortilla chips under the Emerald, Pop Secret, and Kettle brands. The company also offers culinary, in-shell, and ingredient nuts under the Diamond of California brand name.
The Diamond Foods, Inc. class action lawsuit alleges the Company and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing false and misleading statements regarding Diamond Food’s business and financial results, including that the Company:
Failed to disclose it had underestimated the ultimate price to be paid to walnut growers.
Improperly accounted for its cost of sales and as result, overstated their financial results.
Lacked adequate internal and financial controls.
As a result of the false and misleading statements, the Diamond Foods lacked a reasonable basis for their positive statements about their business, operations, and prospects.
On April 5, 2011, Diamond Foods announced that it was going to acquire the Pringles snack business from The Procter & Gamble Company (P&G) and finish the acquisition by December 2011. However, on November 1, 2011, Diamond Foods finally disclosed that their acquisition of Pringles would be delayed until the first half of 2012 due to internal investigations of the above allegations. It was now apparent that Diamond Foods lacked any reasonable basis for its timeframe for closing the P&G acquisition. In reaction to this news, Diamond Foods shares declines $11.33 per share, or 17.67%, to close on November 2, 2011 at $52.79 per share, on unusually heavy trading volume.
Legal Help for Diamond Foods, Inc. Shareholders
Gilman Law LLP has extensive experience representing both individual and institutional investors in securities class action suits, and has recovered over a billion dollars for its clients. We are ready to assist investors who have sustained losses as a result of Diamond Foods, Inc.’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or CALL TOLL FREE (888) 252-0048.
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