Feds Open Criminal Inquiry Into Diamond Foods

Law360, New York (January 13, 2012, 1:50 PM EST) -- Federal prosecutors are reviewing the financial practices of Diamond Foods Inc. for possible criminal fraud, raising even more questions about the fate of the California-based company's $2.3 billion deal with Procter & Gamble Co. for the Pringles brand, according to a news report Thursday.

The White Collar Division of the U.S. Attorney's Office in San Francisco is coordinating with the U.S. Securities and Exchange Commission to examine how the company accounted for payments to walnut growers last year, the Wall Street Journal reported. Diamond has already...
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