Investors slammed Diamond Foods (NASDAQ:DMND) shares on Thursday after the company restated its financial results for 2010 and 2011 and said it lost money during the first nine months of this year.
The company admitted earlier this year to improper accounting practices that concealed payments made to walnut farmers. The new financial statements cancelled $56.5 million in previously reported earnings, Reuters noted.
Shares of Diamond Foods tumbled more than 21% in afternoon trading as investors absorbed the news.
News of the scandal led to the resignation of Diamond’s top executives. The company is facing possible delisting from the NASDAQ exchange. In the wake of the revelations, it called off its planned acquisition of the Pringles snack brand.
An analyst called the restatement a “first step on the road to recovery” for the battered snack food distributor.
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