By Kevin McCauley
Sard Verbinnen & Co. is working media for the Diamond Foods scandal that yesterday led to the ouster of the CEO and CFO of the giant walnut growers' cooperative following an audit committee disclosure of $80M in improper and unaccounted for payments to growers.
The audit committee blamed inadequate internal controls for the financial mess that will trigger a restatement of financials for 2010 and 2011.
Upon corrective actions taken are replacing CEO Michael Mendes with interim chief Rick Wolford, formerly head of Del Monte Foods; and CFO Steven Neil with acting CFO Robert Zollars.
Mendes and Neil go on administrative leave as the search begins for their replacements.
The accounting woes put Diamond?s proposed $2.5B acquisition of Procter & Gamble?s Pringles canned chip unit in jeopardy.
SV&C's Paul Kranhold, John Christiansen and Lucy Neugart are assisting Linda Segre, Diamond's senior VP/corporate strategy, deal with the crisis. |