STOCKTON, CA -- Diamond Foods Inc. said it is under a formal investigation by the Securities and Exchange Commission over how it accounted for payments to walnut growers.
This follows the company's internal investigation into its accounting of these payments, which some critics say were used to inflate last year's earnings by shifting costs into the current year. | SEE STORY
The controversy over Diamond's accounting practices has delayed its $1.5 billion acquisition of the Pringles chip brand from Procter & Gamble Co. The deal would position the maker of Emerald Nuts and Pop Secret popcorn as the second-largest snack company in the nation behind PepsiCo Inc.
The companies announced the agreement in April and had expected it would close by the end of the year.