News Intelligence Analysis
Press Release Source: Scott+Scott, LLC
Scott+Scott, LLC Files Securities Fraud Class Action Against Diebold Inc.
Tuesday December 13, 6:19 pm ET
Complaint Alleges Insider Trading Violations
COLCHESTER, Conn., Dec. 13 /PRNewswire/ -- Scott+Scott, LLC
(http://www.scott-scott.com), at the direction of clients, has
filed a securities fraud class action in the United States District
Court for the Northern District of Ohio against Diebold Inc.
("Diebold" or the "Company") (NYSE: DBD -
News) and individual defendants. Presently, 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.
If you purchased Diebold securities during the Class Period and
wish to serve as a lead plaintiff in the action, you must move
the court no later than 60 days from today. Any member of the
purported class may move the Court to serve as lead plaintiff
through counsel of their 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 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 Neil Rothstein (nrothstein@scott-scott.com,
800/332-2259, ext. 22 or cell 619/251-0887). Diebold investors
may also contact the firm at DieboldSecuritiesLitigation@scott-scott.com.
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 plaintiff is represented by Scott+Scott, LLC, which has 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: Refco, Inc.; Guidant Corp.; Abbott Laboratories; Halliburton; TRM Corp.; and Faro Tech., among others. Its success has brought shareholders hundreds of millions of dollars in cases against Mattel, Royal Dutch/Shell, Sprint, ImClone and others.
Send a letter
to the editor
about
this article
Back to The Yurica Report Home Page
Copyright © 2005 Yurica Report. All rights reserved.