Diamond Foods Execs Sued Over Botched $2B Pringles Deal

Law360, New York (June 27, 2012, 6:07 PM EDT) -- A shareholders' fund hit Diamond Foods Inc.'s board of directors with a derivative lawsuit in Delaware Chancery Court on Wednesday, alleging gross mismanagement that prompted federal investigations into the company's accounting practices, multiple securities class actions and a botched $2.35 billion acquisition of Pringles.

In its lawsuit, the Board of Trustees of City of Hialeah Employees’ Retirement System accuses Diamond Foods’ top brass, including board chairman Robert Zollars and ousted chief executive Michael Mendes, of misrepresenting the company’s financial condition through bad accounting and maintaining ineffective...
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