Class Period: Jun 30, 2005 to Jan 15, 2008
Lead Plaintiff Deadline: Aug 30, 2010 + Deadline passed
Summary of Case:
Scott+Scott LLP Announces Class Action Lawsuit Against Diebold Inc. and Others on Behalf of Investors -- DBD
NEW YORK, NY, July 1, 2010 (GLOBE NEWSWIRE) -- On June 30, 2010, Scott+Scott LLP filed a class action complaint against Diebold Inc. ("Diebold" or the "Company'') (NYSE: DBD), certain of the Company's officers and KMPG, LLP, Diebold's auditor, in the U.S. District Court for the Northern District of Ohio. The action for violations of the Securities Exchange Act of 1934 is brought on behalf of those purchasing Diebold common stock during the period beginning June 30, 2005 through January 15, 2008, inclusive (the "Class Period'').
If you purchased Diebold common stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than August 30, 2010. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (email@example.com; (800) 404-7770; (860) 537-5537 or visit the Scott+Scott website, http://www.scott-scott.com/) for more information. There is no cost or fee to you.
Based in Ohio, Diebold manufactures and sells automated teller machines ("ATMs"), bank security systems, and electronic voting machines. The Company's securities are traded on the New York Stock Exchange. The complaint against Diebold alleges that, during the Class Period, Diebold and several of its officers intentionally and knowingly misstated the Company's financial performance and financial condition.
During the Class Period, Diebold spokespersons made numerous positive statements about Diebold's revenues and earnings, according to the complaint. The complaint further alleges that these statements were materially false and misleading because they failed to disclose the fraudulent accounting practices employed to achieve the Company's reported results, including: (i) improper use of "bill-and-hold" accounting; (ii) improper recognition of revenue on a lease agreement subject to an undisclosed side buy-back agreement; (iii) manipulating reserves and accruals; (iv) improperly delaying and capitalizing expenses; and (v) improperly writing up the value of used inventory. The complaint also alleges that Diebold's auditor, KPMG, failed to withdraw its unqualified audit opinions after learning that Diebold's prior year financial statements were materially false.
According to the allegations, Diebold's fraudulent accounting practices misstated the Company's reported pre-tax earnings by at least $127 million and skewed the revenue and earnings trends that analysts and investors used to value Diebold's stock. In order to correct the most recent misstatements, on September 30, 2008, Diebold restated its financial statements for the years 2003 through 2006 and the first quarter of 2007 in its belatedly filed 10-K for 2007.
Scott+Scott has significant experience in prosecuting major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.
Source: Scott+Scott LLP
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.