Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Diamond Foods, Inc.

Published in House and Home on Thursday, November 10th 2011 at 15:12 GMT by Market Wire
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SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/diamond/ ]) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Diamond Foods, Inc. (aDiamonda) (NASDAQ:DMND) publicly traded securities during the period between December 9, 2010 and November 4, 2011 (the aClass Perioda).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from November 7, 2011. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffas counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/diamond/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Diamond and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Diamond sells snack products to global, national, regional and independent grocery, drug and convenience store chains, as well as to mass merchandisers and club stores.

The complaint alleges that during the Class Period, defendants misrepresented Diamondas current financial condition and prospective financial results, including its reported earnings and expenses incurred during the Companyas fiscal year 2011, its fiscal 2011 projected revenue and earnings and the timing thereof, and the overall shareholder value related to a proposed acquisition of The Procter & Gamble Companyas (aP&Ga) Pringles business, purportedly scheduled to close in December 2011. Defendantsa misrepresentations during the Class Period caused the Companyas stock to trade at artificially inflated prices, reaching a Class Period high of $92.47 on September 20, 2011.

On September 27, 2011, The Wall Street Journal published an article entitled aHidden Flaw in P&Gas Diamond Deal,a 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 Companyas fiscal 2011 operating income by $50 million. On November 1, 2011, Diamond announced that the Audit Committee of the Companyas Board of Directors was conducting an internal investigation into payments made to walnut growers in September 2011 and the accounting for such payments. In addition, the Company stated that in light of the accounting investigation, the acquisition of P&Gas Pringles business scheduled to close in December 2011 would be delayed to mid-2012. On this news, the Companyas stock price fell 17% to close at $52.79 per share on November 2, 2011.

Then on November 5, 2011, Barronas Online published an article that discussed in detail the Companyas September 2011 amomentum paymenta to walnut growers and suggested that the Company may have overstated its fiscal 2011 financial results. On November 7, 2011, following these disclosures, Diamondas stock price fell to a close of $39.09 per share, a 15% decline from its Friday, November 4, 2011 close of $46.40 per share.

Plaintiff seeks to recover damages on behalf of all purchasers of Diamond publicly traded securities during the Class Period (the aClassa). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.

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Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Diamond Foods, Inc.