13 December 2005

Walden O'Dell: time to pay the piper

Yesterday, first class slimeball Walden O'Dell unexpectedly resigned as CEO of Diebold, Inc. citing 'personal reasons'. Today, a class action lawsuit was filed against 8 current and former Diebold executives (including O'Dell), charging they participated in various schemes designed to mask Diebold's financial woes and inflate the company's stock. For good measure, they're throwing in insider trading charges.
The BRAD BLOG can now report that a Securities Fraud Class Action suit has been filed against Diebold, Inc. (stock symbol: DBD) naming eight top executive officers in the company as co-defendants. The suit has been filed by plaintiff Janice Konkol, alleging securities fraud against the North Canton, Ohio-based manufacturer of Voting Systems and ATM machines on behalf of investors who owned shares of Diebold stock and lost money due to an alleged fraudulent scheme by the company and its executives to deceive shareholders during the "class period" of October 22, 2003 through September 21, 2005. The suit was filed today in U.S. Federal District Court in Ohio and alleges the company "artificially inflated" stock prices through misleading public information designed to conceal the true nature of Diebold's financial and legal situation. The defendants are also alleged to have attempted to disguise well-known and ongoing problems with Diebold's Voting Machine equipment and software. Additionally, the suit alleges insider trading by defendants resulting in proceeds of $2.7 million. Remedies are sought under the Securities Exchange Act of 1934.
Hey, it's not all bad. They do have lots of experience with lawsuits, so they're likely entitled to some sort of VIP discount on their legal fees.

No comments: