Diamond Foods Pays $5M To End SEC Walnut Fraud Case

Law360, New York (January 9, 2014, 4:04 PM EST) -- The U.S. Securities and Exchange Commission has cracked a case of alleged accounting fraud, reaching a $5 million settlement Thursday with Diamond Foods Inc. over claims the snack food company falsified walnut costs to boost earnings, according to a statement.

The SEC sued the San Francisco-based company and two of its former executives for violations of several federal securities laws in California federal court for their roles in an accounting scheme. While the company and former CEO Michael Mendes agreed to settle, the SEC’s litigation continues...
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