The real question has to do with 2012 earnings and the Pringle deal. If the restatements and the removal of Mendes have the effect of mending fences with disaffected growers, 2012 may not be too badly affected. P&G knew the restatement was coming, may be the place they will look for Mendes' replacement if the Pringles deal goes ahead in some form. DMND has at least eliminated much of the uncertainty surrounding the stock.
In AH,m DMND is trading at about $22 and is being featured on Fast Money by Herb Greenberg.
Here's the big problem for the company and the reason the CEO and CFO got fired: This is a systematic overstatement of EPS, for both 2010 and 2011. Company overstated 2010 by $20 million and 2011 by net $40 million, and thought they could make it up through the restructuring reserve via Pringles deal. Unfortuantely they got caught.
2010 EPS will go down by $.70/share 2011 EPS will go down by $1.30/share
Not zero sum, but the restatements don't address 2012. Pulling $60M into 2011 removes it from 2012; the question is how much will they be required to pay to keep the growers in future? Earnings for 2012 won't be hit unless they must pay more than the $60M already pulled into 2011.