Berman DeValerio Files Securities Class Action Lawsuit Against Diamond Foods, Inc.

On November 7, 2011, the law firm of Berman DeValerio filed a securities class action lawsuit against Diamond Foods, Inc. (NASDAQ: DMND)(“Diamond” or the “Company”) and certain of its officers (collectively, with Diamond, the “Defendants”). Diamond is a branded food company specializing in processing, marketing and distributing culinary, snack, in-shell and ingredient nuts.

The lawsuit alleges violations of United States securities laws on behalf of purchasers of Diamond common stock between December 9, 2010 and November 4, 2011 (the “Class Period”). The complaint was filed in the United States District Court for the Northern District of California. The case is captioned Mitchem v. Diamond Foods, Inc. and the case number is 11-CV-5399-RS. To receive a copy of the complaint, please call Berman DeValerio at [phone] or click here.

Pursuant to the Private Securities Litigation Reform Act of 1995, investors that wish to serve as the lead plaintiff in the case must file a motion for appointment with the court by no later than January 6, 2012.

The lawsuit alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b) and 78t(a), and Rule 10b-5 promulgated thereunder by the United States Securities Exchange Commission on behalf of Class Period investors.

According to the lawsuit, Defendants made material false and misleading statements and failed to disclose material facts about Diamond’s business. Specifically, the lawsuit alleges that Defendants (1) overstated Diamond’s earnings by improperly accounting for payments to walnut growers; (2) failed to disclose that the Company’s acquisition of another major snack brand would be delayed; (3) made false statements about the adequacy of Diamond’s internal and financial controls, and (4) made materially false and misleading statements about the Company’s financial results.

On November 1, 2011, after the stock markets closed, the Company’s Audit Committee announced that it had launched an investigation into Diamond’s accounting for payments to walnut growers. Upon this announcement, and subsequent revelations in the press about problems at Diamond, the Company’s share price fell from $64.12 on November 1, to close at $39.09 on November 7, 2011. The decline in Diamond’s stock price so far represents a loss of $25.03 per share, or over 39%.