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US: SEC pursues Diamond Foods walnut scheme

By  |  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.

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    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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