CLEVELAND, Dec. 19, 2005 (PRIMEZONE) -- Landskroner Grieco Madden, Ltd. (http://www.landskronerlaw.com) announces that it has commenced a class action in the United States District Court for the Northern District of Ohio on behalf of purchasers of Diebold, Incorporated ("Diebold") (NYSE:DBD) common stock during the period between October 22, 2003 and September 20, 2005 (the "Class Period"). Landskroner Grieco Madden, Ltd.is an Ohio-based law firm whose attorneys are licensed and regularly practice in the federal courts of Ohio.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from December 13, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jack Landskroner of Landskroner Grieco Madden, Ltd. at 866-522-9500 (toll-free) or 216-522-9000, or via e-mail at jack@landskronerlaw.com.
If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.landskronerlaw.com/diebold.htm. 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.
The complaint charges Diebold and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Diebold is primarily engaged in the manufacture, sale, installation and service of automated self-service transaction systems, electronic and physical security products, election systems and software.
The complaint alleges that during the Class Period, defendants issued false statements about the Company's business, products, financial results and prospects causing the Company's stock to trade at artificially inflated levels. Then on September 21, 2005, before the market opened, the Company announced it was "lowering its third quarter and full-year earnings per share guidance for 2005." Upon release of this news, Diebold's stock collapsed to $37.27 per share on volume of 6.1 million shares. Diebold's CEO and Chairman has since resigned from the Company.
According to the complaint, the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) Diebold's financial statements in 2004 and the first two quarters of 2005 were misstated due to its improper accounting for commission expenses; (b) the Company's internal controls were woefully deficient; (c) Diebold was losing market share in North America to NCR such that its ATM business would not be nearly as favorable in 2005 as the market had been led to believe; (d) Diebold's election machines continued to have severe problems that would hurt the Company in the future due to adverse publicity and reduced sales; and (e) due to these problems, Diebold was not on track to report the favorable 2005 EPS being projected for the Company.
Plaintiff seeks to recover damages on behalf of all purchasers of Diebold common stock during the Class Period (the "Class"). The plaintiff is represented by Landskroner Grieco Madden, Ltd. which has expertise in prosecuting investor class actions and in actions involving financial fraud. Landskroner Grieco Madden, Ltd. has been active in major litigations filed in the Northern District of Ohio on behalf of defrauded investors and consumers. The Landskroner Grieco Madden, Ltd. website (http://www.landskronerlaw.com) has more information about the firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca