On November 30th, a U.S. District Court denied motions to dismiss securities fraud claims brought against Diamond Foods and two of its executives. The Court found that the magnitude of the alleged wrongful accounting, the fact that the GAAP violations were basic, and Diamond's inconsistent and deliberately ambiguous statements regarding the nature and purpose of allegedly improper payments all contribute to a strong inference of intentional misconduct. Claims asserted against Diamond's auditor, however, were dismissed. The allegations against it were based on assumptions of what might have or could have occurred. Very few facts were alleged regarding what it actually did. In re Diamond Foods, Inc., Securities Litigation.