Snack maker Diamond Foods is reportedly being investigated by federal prosecutors who are working with the Securities and Exchange Commission to probe the accounting for the company’s payments to walnut growers.
Diamond revealed last fall that it had made a pre-harvest “momentum payment” to walnut growers in early September, prior to the delivery of the fall walnut crop to reflect the fiscal 2012 projected market environment. The company said the payment had been accounted for in its fiscal 2012 cost of goods sold and in the guidance provided by the company on Sept. 15, 2011.
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