Diebold Shareholders Fall Short In Fraud Appeal

Law360, New York (December 23, 2009, 1:46 PM EST) -- A federal appeals court has rejected an attempt by Diebold Inc. shareholders to revive a securities fraud class action against the ATM maker, finding the plaintiffs’ allegations irremediably vague and conclusory.

A three-judge panel of the U.S. Court of Appeals for the Sixth Circuit upheld the dismissal of the shareholders' suit, holding that the plaintiffs failed to meet their burden of advancing specific facts and pleading scienter when alleging that Diebold connived to inflate its stock price by embellishing its sales figures.

The plaintiffs contend the...
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