Kahn Swick & Foti, LLC ("KSF") and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., report that Diamond Foods (Nasdaq: DMND) stock has fallen an additional 13.25% - falling $4.40 to $28.73 in after-hours trading - following the publication by The Wall Street Journal, of a headline stating that federal prosecutors have opened inquiry into DMND walnut payments, citing sources.
This investigation follows the filing of investors’ class action lawsuit for those who purchased shares of Diamond Foods between December 9, 2010 and November 4, 2011. That lawsuit was filed in the United States District Court for the Northern District of California.
If you are a Diamond shareholder and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn ( firstname.lastname@example.org), toll free, 877-515-1850, or via cell phone any time at 504-301-7900. KSF also encourages anyone with information regarding Diamond’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
About the LawsuitThe complaint filed against Diamond Foods charges the Company and certain of its officers and directors with violations of the Securities Exchange Act of 1934. On September 27, 2011, The Wall Street Journal published an article entitled “Hidden Flaw in P&G’s Diamond Deal,” which discussed a $50 million payment the Company made in September 2011 to walnut growers, suggesting that the payment, had it been made during the fiscal year that ended July 31, 2011, would have reduced the Company’s fiscal 2011 operating income by $50 million. On November 1, 2011, Diamond announced that the Audit Committee of the Company’s Board of Directors was conducting an internal investigation into payments made to walnut growers in September 2011 and the accounting for such payments. On this news, the Company’s stock price fell 17% to close at $52.79 per share on November 2, 2011. About Kahn Swick & Foti, LLC