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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