Diebold hit with class action suit!!

EXCLUSIVE: SECURITIES FRAUD LITIGATION FILED AGAINST DIEBOLD, INC!
Eight Current and Former Executives Named as Co-Defendants, Including former CEO O’Dell and New CEO Swidarski
Class Action Suit Alleges Fraud, Insider Trading, Manipulation of Stock Prices, Concealment of Known Flaws in Voting Machines and Company Structural Problems

The BRAD BLOG can now report that a Securities Fraud Class Action suit has been filed against Diebold, Inc. (stock symbol: DBD) naming eight top executive officers in the company as co-defendants. The suit has been filed by plaintiff Janice Konkol, alleging securities fraud against the North Canton, Ohio-based manufacturer of Voting Systems and ATM machines on behalf of investors who owned shares of Diebold stock and lost money due to an alleged fraudulent scheme by the company and its executives to deceive shareholders during the “class period” of October 22, 2003 through September 21, 2005.

The suit was filed today in U.S. Federal District Court in Ohio and alleges the company “artificially inflated” stock prices through misleading public information designed to conceal the true nature of Diebold’s financial and legal situation. The defendants are also alleged to have attempted to disguise well-known and ongoing problems with Diebold’s Voting Machine equipment and software. Additionally, the suit alleges insider trading by defendants resulting in proceeds of $2.7 million. Remedies are sought under the Securities Exchange Act of 1934.

The suit, filed by the law firm SCOTT+SCOTT on behalf of Konkol and the plaintiff class, names former Diebold CEO and Chairman, Walden O’Dell as a co-defendant along with seven other current and former officers of the once-venerable company including the new CEO Thomas W. Swidarski who was named yesterday as the new CEO replacing O’Dell after his sudden surpise resignation yesterday.

News of the pending litigation was first reported as imminent in an exclusive report by The BRAD BLOG late last week. Complete details on the suit filed moments ago are now available…

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