Diamond Foods Down 36% Following Audit Committee Report

The shares of Diamond Foods

are getting hit hard after it announced the audit committee investigation findings. The company reported that the Audit Committee has concluded that the company's financial statements for the fiscal years 2010 and 2011 will need to be restated. Chairman of Diamond Foods, Robert Zollars said: "After an extensive and thorough investigation, the Audit Committee concluded that the Company's internal controls were inadequate and that certain grower payments for the 2011 and 2010 crops were not accounted for in the correct periods. As a result, the Company will restate its fiscal years 2010 and 2011 financial statements." Diamond Foods is currently trading at $23.25, a loss of $13.41 or 36.58%.