Diebold Agrees to Stock Drop Suit Settlement

A settlement of $4.5 million has been preliminarily approved by a federal court in a consolidated class action lawsuit against Diebold, Incorporated.

The suit claimed that the defendants breached their fiduciary duties under the Employee Retirement Income Security Act (ERISA) by continuing to allow the investment of the company’s 401(k) plan’s assets in Diebold common stock or company stock fund units during a time when they knew or should have known that such an investment was imprudent. According to an announcement by four law firms that represented the 401(k) participants, all defendants deny any wrongdoing.  

The $4.5 million will be divided among eligible settlement class members, after payment of any court-approved attorneys’ fees and expenses, compensation payments to the named plaintiffs, and payment of other costs and expenses of the settlement.  The settlement class includes all persons (excluding defendants) who were participants in or beneficiaries of the Diebold, Inc. 401(k) Savings Plan at any time between October 22, 2003, and May 7, 2009, and whose accounts included investments in Diebold stock.