Diamond Foods Target of Investigation by Investor-Rights Law Firm Hagens Berman

BERKELEY, Calif., Nov 9, 2011 /PRNewswire/ -- Diamond Foods Inc. (NASDAQ: DMND) is the target of an investigation by investor-rights law firm Hagens Berman, focusing on whether the company made false and misleading statements and omissions regarding the Company's internal financial controls and its accounting for payments to crop growers.

The investigation centers on whether Diamond Foods violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, on behalf of investors who purchased or otherwise acquired Diamond's common stock during the period April 5, 2011 through and including November 1, 2011.

Diamond Food announced on November 1, 2011 that it had received a communication from outside the Company questioning the timing of certain payments to walnut growers and therefore was postponing its $2.35 billion acquisition of Pringles, in order to allow Diamond to complete an internal accounting investigation.

"Investors rely on publically traded companies to provide them with accurate information in making informed investment decisions," Reed Kathrein, partner at Hagens Berman said. "We fear that Diamond may have engineered its financials in order to acquire Pringles, misleading investors."

Kathrein added that Hagens Berman is evaluating representing additional investors in class-action litigation.  

Hagens Berman in investigating whether these statements were materially false and misleading and whether the company was lacking sufficient internal controls making it susceptible to accounting fraud; whether defendants failed to disclose accounting irregularities surrounding payments; whether the Company was supplying accurate financial statements; and if Diamond properly disclosed  the risks of  the possible lack of internal controls.

Since November 1, 2011, Diamond's stock price has dropped approximately $25.00 per share, or $550 million in market capitalization.

Hagens Berman encourages investors who purchased Diamond Foods stock between April 5, 2011, and November 1, 2011, to contact the firm.

Hagens Berman Partner Reed R. Kathrein is leading the firm's investigation and can be reached at (510) 725-3000. Investors can also learn more about this investigation 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