Diamond Foods Escapes Suit In Del. Over Accounting Scandal

Law360, Wilmington (February 28, 2013, 8:32 PM EST) -- A Delaware judge on Thursday tossed a shareholder derivative suit targeting Diamond Foods Inc.’s board over an accounting scandal that ultimately sank its acquisition of Pringles potato chips, finding that the plaintiffs are pushing the exact same claims in federal court.

Chancellor Leo Strine of the Delaware Chancery Court issued a short opinion dismissing the suit, ruling that the shareholders could not press breach of fiduciary duty claims against the snack food maker’s directors in Delaware while they simultaneously appealed the dismissal of a “near identical”...
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