Diamond Foods, Inc. is an American packaged food company that primarily offers nuts and other snack foods.

According to a press release dated November 7, 2011, the Complaint charges Defendants with violations of the federal securities laws in connection with various false and misleading statements concerning the Company’s financials and business operations.

On April 5, 2011, the Company announced that it was going to acquire the well known snack business. The Company represented to investors that the Acquisition would be completed by December 2011.

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was underestimating the ultimate price to be paid to walnut growers; (2) that the Company was improperly accounting for its cost of sales; (3) that, as a result, the Company's financial results were overstated; (4) that the Company lacked adequate internal and financial controls; (5) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times; and (6) that, as a result of the foregoing, the Company's positive statements about its business, operations, and prospects, as well as those regarding the timetable for the Acquisition, lacked a reasonable basis.

On November 1, 2011, the Company disclosed that the Acquisition would be delayed until the first half of 2012. The Company revealed that the delay was the result of an internal investigation regarding payments to walnut growers. According to the Company, the investigation was prompted by the Chairman of the Audit Committee of the Company's Board of Directors receiving an external communication regarding the Company’s accounting for certain crop payments to walnut growers. On this news, the Company's shares declined $11.33 per share, or 17.67%, to close on November 2, 2011, at $52.79 per share, on unusually heavy trading volume.

On January 3, 2012, The Court issued an order relating the following cases: 11-CV-05386 Salhuana v. Diamond Foods, Inc., et al,; 11-CV-05399 Mitchem v. Diamond Foods, Inc., et al.; 11-CV-05409 Woodward v. Diamond Foods, Inc., et al.; 11-CV-05457 Rall, et al. v. Diamond Foods, Inc., et al.; 11-CV-05479 Simon v. Diamond Foods, Inc., et al.; 11-CV-05615 MacFarland v. Diamond Foods, Inc., et al.

On January 24, 2012, the Court issued an order consolidating the cases mentioned in the January 3rd order under the caption, In re Diamond Foods, Inc., Securities Litigation, and Case Number 11- CV-05386.

On March 20, 2012, the Court issued an order appointing lead Plaintiff.

On July 30, 2012, Plaintiffs filed a consolidated Complaint.

On November 30, 2012, the Court issued an order denying the motions to dismiss of certain Defendants and granting the motion to dismiss a certain Defendant.

On May 6, 2013, the Court issued an order granting the motion to certify a class in this action, pursuant to Rule 23(b)(3).

On August 21, 2013, the parties filed a Stipulation of Settlement. The Settlement was preliminarily approved by the Court on September 26. On January 10, 2014, the Court issued an order granting final approval of the Settlement and also awarding attorneys' fees and expenses.