November 16, 2015 (Shareholders Foundation) - An investor who currently holds shares of Diamond Foods, Inc. (NASDAQ:DMND), filed a lawsuit in effort to halt the proposed takeover of Diamond Foods, Inc. by Snyder's-Lance, Inc for a value of approximately $40.46 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:DMND stockholders by agreeing to sell Diamond Foods, Inc too cheaply via an unfair process to Snyder's-Lance, Inc.

On October 28, 2015 Snyder's-Lance, Inc. (NASDAQ: LNCE) and Diamond Foods, Inc. (NASDAQ:DMND) announced that they have entered into a n agreement under which Snyder's-Lance will acquire all outstanding shares of Diamond Foods, Inc. (NASDAQ:DMND) in a cash and stock merger transaction for approximately $1.91 billion, including the assumption of approximately $640 million of indebtedness. Under the terms of the agreement, Diamond Foods’ stockholders will receive 0.775 Snyder’s-Lance shares and $12.50 in cash per Diamond Foods share upon closing of the transaction. Based on a closing price of $36.08 of NASDAQ:LNCE shares on October 27, 2015, shareholders of Diamond Foods, Inc. (NASDAQ:DMND) will receive a value of approximately $40.46 per NASDAQ:DMND share.

However, the plaintiff claims that the proposed consideration NASDAQ:DMND shareholders will receive is grossly inadequate and undervalues Diamond Foods, Inc. Indeed, Diamond Foods, Inc. reported that its Total Revenue declined slightly from $865.21 million for the 12 months period that ended on July 31, 2014 to $864.16 million for the 12 months period that ended on July 31, 2015 and that its Net Loss of $164.70 million for the 12 months period that ended on July 31, 2014 turned into a Net Income of $33.03 million for the 12 months period that ended on July 31, 2015.

In addition, the plaintiff alleges that the process is also unfair to NASDAQ:DMND stockholders. Indeed, Oaktree Capital (NYSE:OAK), Diamond’s largest stockholder, has already agreed to vote in favor of the transaction.