Diamond Foods Boots Out CEO, CFO After Financial Probe

Law360, New York (February 8, 2012, 8:15 PM EST) -- Diamond Foods Inc. on Wednesday removed its chief executive and chief financial officers and said it would restate two years of financial results following an investigation into its accounting for payments from walnut growers.

The news has caused The Procter & Gamble Co., which was poised to sell the Pringles brand for $2.3 billion to the California-based company, to rethink the deal and “evaluate next steps.”

Diamond Foods said an audit committee had found during a three-month probe that that a $20 million "continuity" payment made to...
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