Shareholder rights firm Robbins Umeda LLP has expanded its investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Diamond Foods, Inc. (NASDAQ: DMND). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Umeda LLP's expanded investigation focuses on whether officials at Diamond Foods breached their fiduciary duties to shareholders, maintained woefully inadequate controls, and wasted corporate assets to the detriment of the company and investors. On December 15, 2011, Diamond Foods disclosed that the company received a "formal order of investigation" from the United States Securities and Exchange Commission (the "SEC") following allegations of serious accounting deficiencies at the company. This announcement came just days after officials at Diamond Foods missed the December 12, 2011 deadline to file the company's financial results for the first quarter of the coming fiscal year.
Furthermore, in an article that appeared in the Wall Street Journal on December 16, 2011, a spokesman for Proctor & Gamble intimated for the first time that the company might be reconsidering its commitment to sell its Pringles business to Diamond Foods saying, "Our commitment to the transaction is predicated on the favorable resolution of all these current investigations."
Since these new facts have emerged, Diamond Foods has become the focus of renewed public and legal scrutiny. Moreover, these events have seriously undermined investor confidence and Diamond Food's business reputation and intrinsic value. After closing as high as $92.47 per share on September 20, 2011, shares of the company's stock closed on at just $27.02 per share on December 16, 2011.
Robbins Umeda LLP notes that a potentially appropriate course of conduct for Diamond Foods shareholders is filing a derivative action to hold officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/diamond-foods-inc/
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