| Company: | Diebold Inc |
| Ticker Symbol: | DBD |
| Class Period: | Jun-30-05 to Jan-15-08 |
| Date Filed: | Jul-1-10 |
| Lead Plaintiff Deadline: | Aug-30-10 |
| Court: | Northern District of Ohio |
| Allegations: | |
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.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
