Orlando, FL 12/15/11 (StreetBeat) -- Diamond Foods Inc (Nasdaq: DMND) said it received a formal order of investigation from the Securities and Exchange Commission related to its accounting for certain crop payments to walnut growers.The company, which agreed to buy the Pringles potato chip business from Procter & Gamble Co in April, has seen its stock lose nearly half its value since it first announced an internal probe in November.
Earlier this week, Diamond Foods delayed filing its quarterly report to the SEC on account of the probe, which centers on a certain "momentum payment" made to growers on Sept. 2, just days after Diamond's final payment for the 2010 crop.
The probe has also caused Diamond to delay the closing of its Pringles acquisition until 2012.
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