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US: SEC pursues Diamond Foods walnut scheme

 |  January 10, 2014

The Securities and Exchange Commission announced charges against Diamond Foods, along with two of the food company’s executives, over allegations of fixing walnut prices.

Reports say the company has agreed to pay $5 million for the claims; an ex-CEO of the company will also settle with authorities, though litigation against former Diamond Foods CFO Steven Neil is on going. Neil is accused of spearheading the price-fixing plan, which allegedly involved underpaying walnut growers.

The company is accused of falsifying walnut costs to boost earnings. Following the news of the allegations, Diamond stocks fell sharply.

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