Diamond Foods Now Cooks! …their books. CEO and CFO Out, Forced to Restate Earnings
Diamond Foods is getting crushed after hours, (down over 43%) on the announcement that they, like an alarming number of corporations, have trouble following longstanding GAAP (Generally Accepted Accounting Principles). According to their press release, a total of $80 million in payments to growers was not accounted for during the correct time periods. In a sign of good faith, Michael J. Mendes and Steven M. Neil have been placed on administrative leave. From Diamond’s press release: “The Audit Committee has concluded that the Company’s financial statements for the fiscal years 2010 and 2011 will need to be restated. Over the course of … Read more