SOURCE: Brower Piven, A Professional Corporation

July 10, 2010 15:26 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $1,000,000 From Investment in Diebold, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the August 30, 2010 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - July 10, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Ohio on behalf of purchasers of the common stock of Diebold, Inc. ("Diebold" or the "Company") (NYSE: DBD) during the period between June 30, 2005 and January 15, 2008, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than August 30, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/415-6616) to answer any questions you may have in that regard. 

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period the Company's fraudulent accounting practices employed to achieve the Company's reported results, including the improper use of "bill-and-hold" accounting, the improper recognition of revenue on a lease agreement subject to an undisclosed side buy-back agreement, the manipulation of reserves and accruals, the improper delay in capitalizing expenses, and the improper increase in 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.

After the Company announced on January 15, 2008 that it concluded "that its financial statements for the fiscal years ended December 31, 2006, 2005, 2004 and 2003; the quarterly data in each of the quarters for the years ended December 31, 2006 and 2005; and the quarter ended March 31, 2007 must be restated to reflect the company's revised accounting method and should no longer be relied upon," the value of Diebold's shares declined substantially. According to the complaint, 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 late-filed 2007 10-K.

If you have suffered a net loss for all transactions in Diebold, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact