BERKELEY, Calif., Jan. 3, 2012 /PRNewswire/ -- Hagens Berman today reminded investors that only two more days remain before the Jan. 6, 2012, lead plaintiff deadline in a securities class action filed against Diamond Foods (NASDAQ: DMND).
Investors who purchased shares between Dec. 9, 2010, and Nov. 4, 2011 (the "class period"), with losses exceeding $500,000 are encouraged to call Partner Reed R. Kathrein at (510) 725-3000 or email the firm at DMND@hbsslaw.com. You can also contact Hagens Berman online at www.hbsslaw.com/diamondfoods. Mr. Kathrein has led the firms investigation, including interviewing growers.
On Nov. 1, 2011, Diamond Foods announced that it was postponing its acquisition of Pringles, which it had previously told investors would be completed by Dec. 2011. The company stated that it postponed the acquisition in order to investigate possible improper accounting of payments to walnut growers. On this news, Diamond shares declined $11.33 per share, or more than 17.6%, to close at $52.79 per share on November 2, 2011.On November 3, 2011, The Wall Street Journal reported that the "investigation centers around the timing of a recent payment to walnut growers for their 2011 crop" and that at least one of the improper payments is estimated at $50 million. On this news, Diamond shares declined an additional $6.39 per share or 12% in two consecutive trading sessions, to close at $46.40 per share on Nov. 4, 2011. On Nov. 5, 2011, Barron's published an article stating that had the Company "properly booked costs for fiscal 2011… it would've earned as little as $1.14 a share," instead of the reported earnings for the fiscal year ending July 2011 of $2.61 per share, before noncash charges and expenses. On this news, the stock fell an additional $7.31 per share or nearly 16%, to close at $39.09 per share on November 7, 2011. On Dec. 12, 2011, DMND stock fell 20 percent after the announcement that its internal audit would not be completed until mid-February. On Dec. 15, 2011, Diamond Foods disclosed that it is being investigated by the Securities and Exchange Commission (SEC), causing Hagens Berman to deepen its investigation. Diamond Foods has stated that it will fully cooperate with the SEC investigation. On the news of the SEC investigation, stocks fell another 5 percent selling at $29.47 per share by the time the market closed. In Sept., the stock was trading near $90.00. 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.