US: Diamond to pay US$5m to settle accounting scandal
Diamond puts accounting scandal to rest with SEC payment
Diamond Foods will pay a fine of US$5m to settle charges related to an accounting scandal that saw the company delay recording payments to walnut growers in order to inflate profits.
Between 2010 and 2011, Diamond's then-CFO Steven Neil fraudulently under-reported money paid to walnut growers in order to boosted reported net earnings, the US Securities and Exchange Commission said yesterday (9 January).
Neil and then CEO Michael Mendes were replaced after an internal investigation uncovered the improper accounting. Diamond also had to re-state accounts for two financial years.
"Diamond Foods misled investors on Main Street to believe that the company was consistently beating earnings estimates on Wall Street," said Jina Choi, director of the SEC's San Francisco regional office. "Corporate officers cannot manipulate fiscal numbers to create a false impression of consistent earnings growth."
Both Diamond Foods and former chief executive Michael Mendes have reached settlements with the securities regulator. Mendes will pay a fine of $125,000 and has already forfeited or returned more than $4m he received in bonuses for the 2010-11 period. Litigation against Neil is ongoing, the SEC added.
Potato Chips in United Kingdom industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2009-13, and forecast to 2018). The profile ...
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global savory snacks market during April 2014. S...
The report provides a review of the latest news and key events in the global savory snacks market during October 2014....
Report Description Extruded snacks are obtained through the extrusion technology, either directly or through the processing of snack pellets. The advanced technologies offer advantages such as innovat...
Synopsis The report provides a review of the latest news and key events in the global savory snacks market during March 2014. Summary Using this report, marketers will effectively gain an insight int...
Synopsis Using this report, marketers will effectively gain an insight into the latest happenings in the global savory snacks market throughout the month. The monthly report provides the reader with ...
- Challenges for General Mills with The Good Table
- Greek crisis - The impact on shopper behaviour
- What US companies might Nomad Foods buy?
- Why investors are concerned about water risk
- Competition intensifies among UK burger chains
- Mitsubishi buys stake in Olam International
- B&G Foods "front-runner for Green Giant"
- Arla strikes JVs in Nigeria and Senegal
- KitKat to go sustainably sourced cocoa only
- FrieslandCampina H1 earnings up despite flat sales
- Management briefing: just-food’s industry outlook for 2015
- Food Flavourings & Colourings (UK) - Industry Report
- Biscuit Manufacturers (UK) - Industry Report
- Bakery Market in Japan: Forecast, and Market Analysis 2015-2019
- The Coca-Cola Company : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis