Scott+Scott, LLC Files Securities Fraud Class Action Against Diebold Inc.

Complaint Alleges Insider Trading Violations

Dec 13, 2005, 00:00 ET from Scott+Scott, LLC

    COLCHESTER, Conn., Dec. 13 /PRNewswire/ -- Scott+Scott, LLC
 (, 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) 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 (,
 800/332-2259, ext. 22 or cell 619/251-0887). Diebold investors may also
 contact the firm at
     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
     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.

SOURCE Scott+Scott, LLC