Diebold’s former chairman and CEO, Walden O’Dell, resigned Dec 12 after several years of controversy surrounding Diebold’s touch-screen voting machines and O’Dell’s financial contributions to President Bush’s campaign.
Colchester, CT (PRWEB) February 10, 2006
Scott+Scott, LLC (http://www.scott-scott.com), which initiated on December 13, 2005 the first securities fraud class action against Diebold, Inc. (“Diebold'' or the “Company'') and certain of its officers and directors, will file a Motion for Lead Plaintiff and Lead Counsel this Monday, February 13, 2006. The action is pending in the United States District Court for the Northern District of Ohio (No. 05CV2873). The Class is defined in the complaint drafted by Scott+Scott as those who purchased Diebold securities between October 22, 2003, and September 21, 2005, inclusive (the ``Class Period''). However, any purchaser of Diebold securities can contact the firm as the Class Period may change as information is revealed. Diebold engages in the development, manufacture, sale, and service of systems, software, and various products used to equip bank facilities such as automatic teller machines.
On February 7, 2006, M.R. Kropko, an Associated Press business writer quoted Diebold CEO Thomas Swidarski as stating “ [t]here’s pieces and aspects of each of our businesses that I’m going to be looking at with a very critical eye in terms of what the future holds for us.” Kropko also reminded us that “Diebold’s former chairman and CEO, Walden O’Dell, resigned Dec 12 after several years of controversy surrounding Diebold’s touch-screen voting machines and O’Dell’s financial contributions to President Bush’s campaign.”
If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott for more information. Scott+Scott will provide class members with case materials, answer all questions regarding participation and rights and assist with other services the firm provides. There is no cost or fee to you. Contact Scott+Scott partner David R. Scott (drscott at scott-scott.com) at 800/404-7770 or 800/332-2259. Diebold investors may also contact the firm at DieboldSecuritiesLitigation at scott-scott.com . The Firm has offices in Ohio, Connecticut, and California.
The complaint alleges that defendants violated provisions of the United States securities laws, causing artificial inflation of the Company's stock price. According to the complaint, during the Class Period, the Company lacked a credible state of internal controls and corporate compliance and remained unable to assure the quality and working order of its voting machine products. It is further alleged that the Company's false and misleading statements served to conceal the dimensions and scope of internal problems at the Company, impacting product quality, strategic planning, forecasting and guidance and culminating in false representations of astonishingly low and incredibly inaccurate restructuring charges for the 2005 fiscal year, which grossly understated the true costs and problems defendants faced to restructure the Company. The complaint also alleges over $2.7 million of insider trading proceeds obtained by individual defendants during the Class Period.
Finally, investors learned the truth about the adverse impact of the Company's alleged defective and deficient inventory-related controls and systems on Diebold's financial performance. As a result of defendants' shocking news and disclosures of September 21, 2005, the price of Diebold shares plunged 15.5% on unusually high volume, falling from $44.37 per share on September 20, 2005, to $37.47 per share on September 21, 2005, for a one-day drop of $6.90 per share on volume of 6.1 million shares -- nearly eight times the average daily trading volume. The stock is currently trading at about $39.04.
The plaintiff is represented by Scott+Scott, LLC, a firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide. Cases currently being litigated and/or investigated by Scott+Scott, LLC include: Proquest Company; GrafTech International Ltd.; Estee Lauder; Halliburton; and pension retirement cases for General Motors and Ford Motor Company Inc. employees, among others. Its success has brought shareholders hundreds of millions of dollars in cases against Mattel, Royal Dutch/Shell, Sprint, ImClone and others.
For more information, contact:
David R. Scott
e-mail: drscott (at) scott-scott.com
e-mail: nrothstein (at) scott-scott.com
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