Shareholders Hit Diebold With $127M Fraud Action

Law360, New York (July 1, 2010, 5:53 PM EDT) -- Former insiders at Diebold Inc. — already in hot water with the U.S. Securities and Exchange Commission — are facing a putative class action from investors that allege financial misstatements in the neighborhood of $127 million.

A Louisiana pension fund filed a complaint on behalf of shareholders Wednesday in the U.S. District Court for the Northern District of Ohio, accusing the ATM maker, three of its former executives and outside auditor KPMG LLP of violating the Securities Exchange Act of 1934.

Diebold's former Chief Financial Officer...
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