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BENSALEM, Pa.--([ BUSINESS WIRE ])--Law Offices of Howard G. Smith, representing investors of Diamond Foods, Inc. (aDiamond Foodsa or the aCompanya) (NASDAQ:DMND), has filed a class action lawsuit in the United States District Court for the Northern District of California. The lawsuit alleges violations of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Diamond Foods securities between December 9, 2010 and November 4, 2011 (the "Class Period").

Diamond Foods processes and distributes snack products. On April 5, 2011, the Company announced the proposed acquisition of the Pringles snack business (the "Acquisition") from The Procter & Gamble Company. The Company represented to investors that the Acquisition would be completed by December 2011.

The Complaint alleges that, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was underestimating the ultimate price to be paid to walnut growers; (2) the Company was improperly accounting for its cost of sales; (3) as a result, the Company's financial results were overstated; (4) the Company lacked adequate internal and financial controls; (5) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times; and (6), as a result of the foregoing, the Company's positive statements about Diamond Foods' business, operations, prospects, and the timing of the Acquisition, lacked a reasonable basis.

No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Diamond Foods securities between December 9, 2010 and November 4, 2011, you have until January 6, 2012, to move for lead plaintiff status. To be a member of the class you need not take action at this time; you may retain counsel of your choice or take no action and remain an absent class member. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215)638-4847, Toll-Free at (888)638-4847, by email to [ howardsmith@howardsmithlaw.com ] or visit our website at [ http://www.howardsmithlaw.com ].