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Diebold suit settled

Sacremento Bee | Nov 11 2004

Diebold Inc. agreed to a $2.6 million settlement over allegations it sold the state faulty touch-screen voting machines, Attorney General Bill Lockyer said Wednesday.
State and county prosecutors had sued the Texas maker of automated teller machines over allegations Diebold used bait-and-switch tactics in selling unreliable electronic voting systems that lacked federal and state certification and were vulnerable to computer hackers and software bugs.

Under the proposed settlement, Diebold will pay about $1.6 million to the state, $475,000 to Alameda County and $500,000 to the University of California Institute of Governmental Studies. The institute will use the money to research ways to train poll workers on electronic voting technology.

Diebold also will reimburse Alameda, Plumas, Kern, San Joaquin, San Diego and Los Angeles counties for some of the costs to set up voting backup measures in last week's general election.

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