Purchasers Of Diamond Foods, Inc. Common Stock Shares May Be Entitled To Payment From An SEC Fair Fund

ALEXANDRIA, Va., April 29, 2019 /PRNewswire/ -- The following statement is being issued regarding the Diamond Foods, Inc. Fair Fund:

Legal Notice
DIAMOND FOODS FAIR FUND DISTRIBUTION PLAN NOTICE
The United States Securities and Exchange Commission authorized this Notice. 
This is not a solicitation from a lawyer.

If you purchased or otherwise acquired Diamond Foods, Inc. common stock shares during the Relevant Period, on or between February 26, 2010 and February 9, 2012, inclusive, you may be entitled to receive a monetary payment from the Diamond Foods, Inc. Fair Fund.

Background
This case involves allegations of financial reporting and earnings management fraud at Diamond Foods, Inc. ("Diamond"), a San Francisco-based snack food company. One of Diamond's businesses involved buying walnuts from its growers and selling those walnuts to retailers. As a result of an alleged scheme by Diamond's former chief financial officer Steven Neil to fraudulently manipulate and delay appropriate recording of the costs paid to walnut growers, Diamond reported inflated earnings during fiscal years 2010 and 2011.

Who's Included?
You could be eligible for a Distribution Payment if you bought or otherwise acquired common stock shares of Diamond Foods, Inc. during the Relevant Period, on or between February 26, 2010 and February 9, 2012.

If you're not sure if you are included, you can get more information, including a detailed notice, at www.DiamondFoodsFairFund.com or by calling toll-free 1-866-677-0654.

What's This About?
On January 9, 2014, the U.S. Securities and Exchange Commission ("SEC" or "Commission") filed separate actions in District Court against Diamond Foods, Inc. ("Diamond") and its former chief financial officer (CFO) Steven Neil ("Neil," together with Diamond and Mendes, the "Defendants") alleging violations of the federal securities laws because of their roles in an accounting scheme to fraudulently manipulate and delay appropriate recording of the costs paid to walnut growers, in order to boost earnings and meet estimates by stock analysts during fiscal years 2010 and 2011.

The SEC simultaneously entered a settled Order Instituting Cease and Desist Proceedings and Imposing a Cease-and-Desist Order against its former chief executive officer (CEO) Michael Mendes ("Mendes") in which he was ordered to pay a $125,000.00 civil penalty. Mendes paid the civil penalty on January 23, 2014.

What Does the Judgment Provide?
On January 21, 2014, the Court entered a Final Judgment against Diamond. The Court ordered that Diamond was liable for a civil penalty in the amount of $5,000,000.00.

Pursuant to the Final Judgment, Diamond paid $5,000,000.00 to the Commission on January 31, 2014. In the separate action against Neil, the Court entered a Final Judgment on February 2, 2015, in which Neil was found liable for a civil penalty in the amount of $125,000.00. The Commission received payment from Neil on February 3, 2015.

The total funds paid by the Defendants, $5,250,000.00, constitute the Distribution Fund and were deposited in an interest-bearing account at the United States Treasury.

More detail can be found in case documents posted at the website www.DiamondFoodsFairFund.com.

How Do You Ask For Payment?
If you believe you are a Potential Claimant and did not receive a claim form packet in the mail, but would like to participate, you must complete the Proof of Claim Form.  The form can be obtained at the Diamond Foods Fair Fund website, www.DiamondFoodsFairFund.com or by calling toll-free 1-866-677-0654.  Fill out the Proof of Claim Form completely, sign it, include copies of all required supporting documentation, and return it to: Diamond Foods, Inc. Fair Fund, c/o KCC Class Action Services, Distribution Agent, P.O. Box 404050, Louisville, KY 40233-4050.

The submission of the Proof of Claim Form and the receipt and acceptance of a distribution by an Eligible Claimant is not intended to be a release of an Eligible Claimant's rights and claims against any party.

What Are Your Other Options?
This Notice provides only summary information regarding the Fair Fund.  We strongly recommend that you read the Distribution Plan, including the Plan of Allocation, and other relevant case documents in their entirety for more complete details. The documents can be found at www.DiamondFoodsFairFund.com.

If you need assistance completing the Proof of Claim Form, or if you have any questions about this Fair Fund, you may obtain more information by visiting the Fair Fund website at www.DiamondFoodsFairFund.com, by calling the dedicated toll-free number at 1-866-677-0654 or sending an email to [email protected].

SOURCE Diamond Foods, Inc. Fair Fund