Diamond Foods (DMND) stock has fallen hard in the past few months since the snack food company announced it was undertaking an internal inquiry into payments it made to walnut growers. Analysts have offered differing opinions on how serious the inquiry is, but on Thursday the case took a new turn.
The company acknowledged that the SEC is now undertaking its own investigation into the case, which means Diamond could be facing subpoenas and depositions in the months ahead. Diamond has said it expects to complete its internal probe in February.
Shares fell 8.5% in midday trading.
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