Robbins
Umeda LLP has commenced an investigation into possible breaches of
fiduciary duty and other violations of the law by certain officers and
directors at Diebold, Inc. ("Diebold" or the "Company") (DBD).
Diebold provides integrated self-service delivery and security systems
and services primarily to the financial, commercial, government, and
retail markets worldwide. The Company was founded in 1859 and is
headquartered in North Canton, Ohio.
Robbins Umeda LLP's investigation concerns whether the Company's
directors and officers damaged Diebold by engaging in fraudulent
accounting practices to inflate earnings to meet analyst forecasts.
On June 2, 2010, the U.S. Securities and Exchange Commission (the "SEC")
filed complaints against the Company, and its former officers Walden
O'Dell, Kevin Krakora, Gregory Geswein, and Sandra Miller. According to
the SEC, between 2002 and 2007, Diebold's fiduciaries would meet monthly
to discuss ways to close the gap between the Company's actual financial
results and analyst forecasts. Allegedly, in response to these meetings,
Krakora would create lists of ways to meet analysts' forecasts that
would be implemented by Krakora, Geswein, and Miller. It appears that,
while some of the proposals represented legitimate business
opportunities, others were fraudulent accounting transactions designed
to improperly recognize revenue and inflate Diebold's financial
performance.
Moreover, during this time, Krakora, Geswein, and Miller are believed to
have engaged in several deliberately fraudulent accounting schemes
including, improperly using "bill-and-hold" accounting, which allowed
Diebold to recognize revenue before delivery of the product, and
manipulating reserves and accruals. These individuals also allegedly
improperly delayed and capitalized on expenses and improperly documented
the value of used inventory.
As a result of the alleged accounting improprieties, the Company had to
restate its earnings from 2003 to 2006, and the first quarter of 2007.
Moreover, the Company has agreed to pay the SEC $25 million to resolve
the claims against it. The SEC's action against Krakora, Geswein, and
Miller is still continuing.
If you are a shareholder of Diebold, plan to continue to hold your
shares, and would like more information about your rights as a
shareholder, please contact attorney Gregory E. Del Gaizo at
800-350-6003 or by e-mail at info@robbinsumeda.com.
Robbins Umeda LLP is a California-based law firm, which has significant
experience representing investors in shareholder derivative actions,
securities fraud class actions, and merger-related shareholder class
actions. For more information about the firm, please go to http://www.robbinsumeda.com.
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