Delayed $2.4B Chip Deal Drives Diamond Shareholders Nuts

Law360, New York (December 22, 2011, 7:30 PM EST) -- A proposed shareholder derivative lawsuit filed Wednesday against Diamond Foods Inc. claims the California-based nut company botched an internal audit and lied about Diamond's 2011 earnings, jeopardizing the company's pending $2.35 billion deal for the valuable Pringles snack brand.

Colorado resident Dave Lucia, on behalf of himself and other Diamond shareholders, accused Diamond and 10 executives — including the company's CEO and chief financial officer — of artificially inflating the company's stock price by cooking the books to hide the fact that Diamond had almost no...
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