Monday, February 13, 2006

Diebold Facing Class Action Securities Fraud Case

I havent been to daily kos for a long time and after visiting today I saw a new post concerning how Diebold is facing a class action securities fraud case

The complaint alleges that defendants violated securities laws, causing artificial inflation of the Diebold's stock price. According to the complaint, Diebold "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." Also alleged are false and misleading statements about internal company problems, and over $2.7 million in insider trading proceeds.

Here some stories about diebold:

1. Diebold machines were involved in many irregular voting issues during the 2004 election.

2. The latest example of why many voting machine and elections experts question election outcomes from Diebold machines happened in Carlise, Ohio, where voters last Tuesday went back to the polls to vote for or against a referendum on a proposed levy for the Carlise Fire Department because Diebold machines recorded more votes than voters during the November 2005 election.

3. Elections officials in California, Florida and other places recently have found Diebold machines to be susceptible to hacking, and not worthy of being purchased by their jurisdictions.

4. In 2003, Walden O'Dell, chief executive of Diebold, announced that he had been a top fund-raiser for President George W. Bush. In a letter dated August 14, 2003 in which he invited guests to a $1,000-a-plate fund-raiser at his suburban Columbus mansion, O'Dell stated that he was "committed to helping Ohio deliver its electoral votes to the president next year."

5. Initial GEMS system used to tabulate votes for the Diebold Opti-scan systems was designed by Jeffrey Dean, who was convicted in the early 1990s of computer-aided embezzlement. Dean was hired by Global Election Systems, which Diebold acquired in 2000. Dean left Diebold with a Golden Parachute in 2004 when his past was revealed

My take on Diebold is that it follows on with all the current court cases with people associated to the Whitehouse. Not really much more to say than karma strikes again.


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