Chitwood Harley Harnes LLP Announces Certification of a Securities Class Action Lawsuit Against Diamond Foods, Inc.
Chitwood Harley Harnes LLP announces that a “Class” comprised of
investors (individuals and entities) who purchased publicly traded
securities of Diamond Foods, Inc. (“Diamond”) from October 5, 2010
through February 8, 2012 (the “Class Period”) has been certified by the
United States District Court for the Northern District of California in
a lawsuit against Diamond and two of its former executives
(“Defendants”).
The lawsuit claims that Defendants deliberately understated commodity
costs – specifically, the costs of walnuts – by improperly accounting
for payments made to walnut growers. This understatement of costs
increased apparent profits and artificially inflated Diamond’s share
price during a period in which Diamond was seeking to use its stock to
acquire Pringles, a snack chip brand owned by Procter & Gamble Co. The
action alleges that Defendants’ conduct violated the Securities Exchange
Act of 1934. The Court denied Defendants’ motions to dismiss the claims
but has not ruled on the merits of the claims or the defenses asserted
by either side in the lawsuit (with the exception of having dismissed
claims against Diamond’s auditor).
Those who wish to remain members of the Class do not have to do anything
at this time and will be informed about any claims process that results
from the trial or any proposed settlement. Class members will be bound
by all orders and judgments of the Court.
Class members may exclude themselves from the Class. To do so, they must
mail a written request for exclusion to Diamond Foods, Inc. Securities
Litigation, c/o KCC Class Action Services, P.O. Box 6159, Novato, CA
94948-6159 by September 17, 2013. The request for exclusion must: (1)
state the name and address of the person or entity requesting exclusion;
(2) specify the number and type of Diamond Foods, Inc. securities
purchased and sold from October 5, 2010, through February 8, 2012, and
specify the dates of these purchases and sales; (3) state that the
person or entity “requests exclusion from the Class in the Diamond
Foods, Inc. Litigation;” and (4) be signed by the person or entity
requesting exclusion.
Class members who exclude themselves from the Class cannot participate
in any recovery for the Class, and will not be bound by any court orders
or judgments.
The lawsuit is entitled In re Diamond Foods, Inc. Securities
Litigation, Case No. 3:11-cv-05386 WHA. For more information,
including a more detailed Notice, the Class Action Complaint and the
Court’s Order Granting Class Certification, visit http://classaction.kccllc.net/DiamondFoods
or write to Class Counsel: Chitwood Harley Harnes LLP, c/o Ze’eva
Kushner Banks, 1230 Peachtree Street NE, Atlanta, Georgia 30309;
Telephone: 1-888-873-3999.
Copyright Business Wire 2013