Diamond Foods Inc. (NASDAQ:DMND) said it will not file its Form 10-Qfor its fiscal first quarter on time because of an ongoing investigationinto accounting for certain crop payments to walnut growers.
Shares of the Stockton, California-based snack food company plunged 20.2 percent to $32.34 in early trade on Monday.
Price of the stock, which has been trading in the 52-week rangebetween $26.37 and $96.13, has taken a hit after questions were raisedabout the company's accounting for a payment to walnut growers thatappeared ahead of next year's deliveries.
Three walnut growers said that they never received orders for 2011crop deliveries to Diamond Foods, though the company said that theycould take the payments and use them as "additional payments" for 2010crops, the Wall Street Journal reported on Monday.
The audit committee is expected to conclude its investigation by the middle of February 2012, the company said.
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