Securities Litigation: Diebold

In re Diebold Securities Litigation
USDC ND Ohio
Disclosure / Restatement

Company background

Litigation background

Lead plaintiffs

SEC disclosures

Form 12b-25 8.12.08
As previously disclosed, Diebold, Incorporated (the Company) determined that its previous, long-standing method of accounting for bill and hold transactions was in error, representing a misapplication of generally accepted accounting principles, and that it would discontinue its use of bill and hold as a method of revenue recognition in its North America and International businesses.
The Companys corrected method of recognizing revenue will be adopted retroactively by restating previously issued financial statements. On January 9, 2008, management of the Company had concluded that the Companys financial statements for the fiscal years ended December 31, 2006, 2005, 2004 and 2003; the quarterly data in each of the quarters for the years ended December 31, 2006 and 2005; and the quarter ended March 31, 2007, must be restated and should no longer be relied upon.
As also previously disclosed, as a result of the Securities and Exchange Commission (SEC) ongoing investigation, the Company and the Audit Committee, in consultation with their outside advisors, have been reviewing other accounting items, including various balance sheet accounts, such as prepaids, accruals, capitalized assets, deferred revenue and reserves within the Companys North America and International businesses. This review is expected to be complete upon filing the Companys restated financial statements.

Complaint