Case Information: Diebold ERISA Litigation

This case In re Diebold ERISA Litigation, 06-cv-00170, pending in the United States District Court for the Northern District of Ohio, covers all participants in the Diebold, Inc. (“Diebold”) 401(k) Savings Plan during the period from October 23, 2003 through the present.

Izard Nobel LLP was appointed as Co-Lead Counsel by the Court on November 17, 2006. The ERISA Plaintiffs filed their Consolidated Complaint on April 6, 2007.  The Complaint alleges that Defendants made misrepresentations relating to Diebold’s voting machine technology, sales and financials.

On May 28, 2008, Judge Peter C. Economus of United States District Court for the Northern District of Ohio denied Defendants’ Motion to Dismiss. The Court found that Plaintiffs had properly stated ERISA claims for breach of fiduciary duty arising from Defendants’ imprudent investment in the company’s stock fund and Defendants’ failure to provide plan participants with complete and accurate information regarding (i) the company’s accounting practices and  (ii) problems with its voting machine technology, sales, and production.

On March 26, 2009, the parties filed a joint motion to stay deadlines pending the resolution of a mediation.  On March 31, 2009, the Court granted the motion to stay proceedings.  On April 5, 2010, the parties filed a joint status report indicating that they had agreed in principal to the terms of a Settlement Agreement. Once the parties execute the Settlement Agreement, it will be submitted to the Court for preliminary and final approval.