Deloitte Dismissed as Defendant In Fraud Class Action Against Diamond Foods

The U.S. District Court for the Northern District of California Nov. 30 dismissed Deloitte & Touche LLP as a defendant in a putative securities fraud class action alleging that Diamond Foods Inc. inflated its share price to facilitate a deal to acquire Pringles, a brand formerly owned by Procter & Gamble Co. (In re Diamond Foods Inc. Securities Litigation).

While dismissing the claims against Deloitte, the outside auditor of Diamond Foods, Judge William Alsup held that the complaint sufficiently pleaded scienter and loss causation as to the actions of Diamond Foods and its former “controlling persons.”

Pringles Deal ...