Calif. to Sue Diebold Over False Claims

Calif. to Sue Diebold Over False Claims

Tue Sep 7, 6:59 PM ET
http://news.yahoo.com/news?tmpl=story&cid=569&u=/nm/20040907/tc_nm/tech_diebold_dc&printer=1

SAN FRANCISCO (Reuters) - California Attorney General Bill Lockyer
said on Tuesday he would sue electronic voting machine maker Diebold
Inc. (NYSE:DBD - news) on charges it defrauded the state with false
claims about its products.

Secretary of State Kevin Shelley has said Diebold deceived California
with aggressive marketing that led to the installation of touch-screen
voting systems that were not tested or approved nationally or in
California.

Lockyer's office issued a statement noting he has authority to
intervene in and take over false claims cases involving vendors to
state.

"Lockyer determined sufficient evidence existed to go forward with a
false claims lawsuit against Diebold," the statement said. The state's
top lawyer earlier had dropped a criminal investigation of Diebold.

Diebold Vice President Thomas Swidarski said in a statement that the
company was pleased Lockyer dropped the probe. Despite Lockyer's
decision to sue, the company is "confident that the state's decision
to intervene will aid in a fair and dispassionate examination of the
issues raised in the case," Swidarski said.

California in April set tough new standards for electronic voting by
ordering new security measures for e-voting machines, and California's
Secretary of State called for a criminal probe into Diebold, the
state's largest e-voting machine supplier.
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