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Diamond Foods names new CEO, CFO and restates 2 years of results following audit
SAN FRANCISCO (AP) ' Diamond Foods Inc. is replacing its CEO and chief financial officer after an internal investigation found that the company improperly accounted for payments to walnut growers and needs to restate two years of financial results.
The company has been embroiled in a dispute over these payments for several months. It announced Wednesday that its audit board found the payments were booked in the wrong period.
The news sent its shares plummeting 41 percent in after-hours trading.
CEO Michael Mendes and Chief Financial Officer Steven Neil were place on administrative leave.
The company said it is looking for permanent replacements for the two and appointed former Del Monte Foods CEO Rick Wolford as its acting CEO. Michael Murphy of Alix Partners was named as acting financial chief.