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Chitwood Harley Harnes LLP announces that a “Class” comprised of investors (individuals and entities) who purchased publicly traded securities of Diamond Foods, Inc. (“Diamond”) from October 5, 2010 through February 8, 2012 (the “Class Period”) has been certified by the United States District Court for the Northern District of California in a lawsuit against Diamond and two of its former executives (“Defendants”).
The lawsuit claims that Defendants deliberately understated commodity costs – specifically, the costs of walnuts – by improperly accounting for payments made to walnut growers. This understatement of costs increased apparent profits and artificially inflated Diamond’s share price during a period in which Diamond was seeking to use its stock to acquire Pringles, a snack chip brand owned by Procter & Gamble Co. The action alleges that Defendants’ conduct violated the Securities Exchange Act of 1934. The Court denied Defendants’ motions to dismiss the claims but has not ruled on the merits of the claims or the defenses asserted by either side in the lawsuit (with the exception of having dismissed claims against Diamond’s auditor).
Those who wish to remain members of the Class do not have to do anything at this time and will be informed about any claims process that results from the trial or any proposed settlement. Class members will be bound by all orders and judgments of the Court.
Class members may exclude themselves from the Class. To do so, they must mail a written request for exclusion to Diamond Foods, Inc. Securities Litigation, c/o KCC Class Action Services, P.O. Box 6159, Novato, CA 94948-6159 by September 17, 2013. The request for exclusion must: (1) state the name and address of the person or entity requesting exclusion; (2) specify the number and type of Diamond Foods, Inc. securities purchased and sold from October 5, 2010, through February 8, 2012, and specify the dates of these purchases and sales; (3) state that the person or entity “requests exclusion from the Class in the Diamond Foods, Inc. Litigation;” and (4) be signed by the person or entity requesting exclusion.