Defendant Name: Diamond Foods, Inc.

Defendant Type: Public Company
SIC Code: 2090
CUSIP: 25260310

Initial Case Details

Legal Case Name SEC v. Diamond Foods, Inc.
First Document Date 09-Jan-2014
Initial Filing Format Civil Proceeding
Case Number 14-cv-00123
Allegation Type Issuer Reporting and Disclosure
Federal District Court California, Northern District of California

Violations Alleged

Exchange Act
Sec 10(b) + Rule 10b-5
Rule 12b-20
Sec 13(a)
Rule 13a-1
Rule 13a-11
Rule 13a-13
Sec 13(b)(2)(A)
Sec 13(b)(2)(B)
Securities Act
Sec 17(a)(1)
Sec 17(a)(2)
Sec 17(a)(3)
Sec 17(a) (Not specified)


First Resolution Date 09-Jan-2014
Headline Total Penalty and Disgorgement

See Related Documents

Related Documents:

LR-22902 09-Jan-2014 Litigation Release
Litigation Release
On January 9, 2014, the SEC published a litigation release regarding this matter. According to the SEC "Diamond reported higher net income and inflated earnings to exceed analysts' estimates for fiscal quarters in 2010 and 2011... Diamond Foods agreed to pay $5 million to settle the SEC's charges."
2014-4 09-Jan-2014 Press Release--Civil Action
SEC Charges Diamond Foods and Two Former Executives Following Accounting Scheme to Boost Earnings Growth
On January 9, 2014, the SEC announced that it charged San Francisco-based snack foods company Diamond Foods ("Diamond") and its former CFO Steven Neil ("Neil") in an accounting scheme to falsify walnut costs in order to boost earnings and meet estimates by stock analysts. The SEC also charged Diamond's former CEO Michael Mendes ("Mendes") for his role in the company's false financial statements filed with the SEC. According to the SEC's complaints filed in federal court in San Francisco, Neil directed the effort to fraudulently underreport money paid to walnut growers by delaying the recording of payments into later fiscal periods. By manipulating walnut costs, Diamond correspondingly reported higher net income, inflating earnings to exceed analysts' estimates for fiscal quarters in 2010 and 2011. Diamond agreed to pay $5 million to settle the SEC's charges. Mendes, who should have known that Diamond's reported walnut cost was incorrect at the time he certified the company's financial statements, also agreed to settle charges against him. The SEC's litigation continues against Neil.
comp-pr2014-4-diamond 09-Jan-2014 Complaint
On January 9, 2014, the SEC filed a complaint against Diamond Foods, Inc. ("Diamond") in the U.S. District Court for the Northern District of California. According to the SEC: "This case involves financial reporting fraud and earnings management at 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 a scheme by Diamond's 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." Specifically, Diamond materially misstated its financial results in multiple SEC Forms 10-Q, 10-K, 8-K, and S-4 from at least February 2010 and ending in September 2011.
court_doc7_14-cv-00123 21-Jan-2014 Court Docket Document
Final Judgment as to Defendant Diamond Foods, Inc.
On January 21, 2015, Federal District Judge William H. Alsup entered final judgment against Diamond Foods, Inc. pursuant to the consent of Diamond Foods, inc.

Related Actions:

SEC v. Steven Neil
In the Matter of Michael Mendes
In the Matter of Steven Neil, CPA