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 ...
- Who could swoop for Diamond Foods?
- Indonesia: the key macro issues facing FMCG firms
- Trans fat studies show complexity of health debate
- Indonesia - Sweet and sour of confectionery sector
- Why Quorn Foods auction promises to be competitive
- Quorn Foods agrees sale to Monde Nissin
- Danone, Kerry, Pulmuone also eyeing Quorn
- Mondelez 'preparing to sell European cheese unit'
- ConAgra Foods "efficiency" drive to hit 1,500 jobs
- Mars to buy Mexican chocolate maker Grupo Turin
- Management briefing: just-food’s industry outlook for 2015
- Danone SA : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis
- The Coca-Cola Company : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis
- E-Grocery Market in India - Market Research 2015-2019
- Global Bakery & Cereals Market: News and Events July 2015