Deadline Approaching in Lawsuit against Diamond Foods, Hagens Berman Reminds Investors As SEC Investigation Is Revealed

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Dec 15, 2011, 09:37 ET

BERKELEY, Calif., Dec 15, 2011 /PRNewswire/ -- Hagens Berman today reminds investors that only 22 days remain before the Jan. 6, 2012 lead plaintiff deadline in a securities class-action filed against Diamond Foods (NASDAQ: DMND).

Investors who purchased Diamond common stock between Dec. 9, 2010, and Nov. 4, 2011 (the "class period"), with significant losses can call Partner Reed R. Kathrein at (510) 725-3000 or email the firm at [email protected]. You can also contact Hagens Berman online at www.hbsslaw.com/diamondfoods.

Hagens Berman is deepening its investigation following Diamond's disclosure of an investigation by the Securities Exchange Commission (SEC).

Diamond had already stated that it was performing an internal investigation regarding certain crop payments to walnut growers and possible accounting issues. Diamond Foods has stated that it will fully cooperate with the SEC investigation.

On Nov. 1, 2011, Diamond Foods announced that it was postponing its acquisition of Pringles, which it had previously told investors would be completed by Dec. 2011. The company stated that it postponed the acquisition in order to investigate possible improper accounting of payments to walnut growers.

On Monday Dec. 12th, 2011, DMND stock fell 20 percent after the announcement that its internal audit would not be completed until mid-February. On Thursday Dec. 15, 2011, on the news of the SEC investigation, stocks fell another 5 percent selling at $29.47 per share by the time the market closed. In Sept., the stock was trading near $90.00.

"It is surprising the SEC is only now looking at Diamond Foods," Mr. Kathrein said. "Our investigation indicates that investors need a full accounting from Diamond concerning these questionable payments and their impact on revenue."

Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.

More information is also available at www.hbsslaw.com/diamondfoods.

About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. In addition to investors, the firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.

SOURCE Hagens Berman Sobol Shapiro LLP