Gilman Law Investigates Lawsuit Against Diamond Foods, Inc.
Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Diamond Foods, Inc. (“Diamond Foods”) and certain of its officers and directors violated the Securities Exchange Act of 1934 and Rule 10b-5, by issuing false and misleading information. Diamond Foods engages in processing, marketing and distributing snack products.
For over 30 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm specializes in cases involving stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired shares of Diamond Foods, Inc. (NASDAQ: DMND) between April 5, 2011 and November 1, 2011 (“Class Period”), you may contact Gilman Law LLP by January 6, 2012 to discuss your rights, including as to recovery of your losses or to obtain additional information.
Diamond Foods Allegedly Made False and Misleading Statements Concerning Their Business and Operations
A shareholders class action lawsuit was commenced in the United States District Court for the Northern District of California. The complaint alleges that during the Class Period, Diamond Foods issued materially false and misleading statements regarding the Company’s business and financial results. Diamond allegedly failed to disclose that the Company had underestimated the ultimate price to be paid to walnut growers. It is further alleged that Diamond Foods improperly accounted for its cost of sales and as result, overstated their financial results. The Complaint also alleges that the Company lacked adequate internal and financial controls. As a result of the false and misleading statements, the Company lacked a reasonable basis for their positive statements about their business, operations, and prospects.
News of Diamond Foods Acquisition of Pringles Artificially Inflated Stock Prices
In addition, on April 5, 2011, Diamond Foods announced that it was going to acquire the Pringles snack business from The Procter & Gamble Company (P&G) and finish the acquisition by December 2011. However, Diamond Foods lacked any reasonable basis for this timeframe. It was not until November 1, 2011 that Diamond Foods finally disclosed that their acquisition of Pringles would be delayed until the first half of 2012 due to internal investigations of the above allegations. In reaction to this news, Diamond Foods shares declines $11,33 per share, or 17.67%, to close on November 2, 2011 at $52.79 per share, on unusually heavy trading volume.
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of Diamond Foods’ fraudulent practices. For a free evaluation of your case or to obtain additional information, please complete the form online or CALL TOLL FREE (888) 252-0048.