Anti-trust probes also said underway in 14 states...
By Brad Friedman on 12/19/2009, 6:41pm PT  

On Thursday we reported that Florida's AG office was investigating the recent acquisition of Diebold's voting machine unit by its larger/largest "competitor," ES&S, for possible violations of anti-trust statutes in the state. Today, the New York Post reports that the U.S. Dept. of Justice is also actively investigating the same thing --- along with 14 states in total --- and may "file a suit to unwind the deal" next month...

The Department of Justice could vote down an already-completed merger of the two biggest makers of voting machines.

The Justice Department, Florida and 13 other states have opened investigations into the September marriage between Election Systems & Software and Diebold's Premier Election Solutions, which played a controversial role in the 2004 presidential election, according to a source with direct knowledge of the process.

Sen. Chuck Schumer (D-NY) is planning to hold hearings on the matter next month, the source said.

Even though the merger gave ES&S a whopping 70 percent of the voting-machine market share, the $5 million deal was too small to require government approval.

Now, the Justice Department is looking into the matter and next month could file a suit to unwind the deal, the source said.

Though the Post story seems to be based on a single, unnamed "source," they also note that "A Diebold spokesman confirmed the Ohio ATM maker was cooperating with a Justice Department investigation."

And while there are other "Justice Department investigation[s]" that Diebold is also cooperating with --- as The BRAD BLOG noted early this year, when the company's Chief Financial Officer was forced to stop down: "[Diebold has been] been facing a class-action securities fraud lawsuit from shareholders since 2005; under SEC investigation since 2006; and under DoJ investigation since 2007; and admitted overstating '07 earnings in early 2008" --- Reuters coverage of the story offers more direct confirmation of the DoJ probe of this particular matter. "Diebold spokesman Michael Jacobsen said in an email that the company was cooperating with the Justice Department review of the sale," they report tonight.

BlackBoxVoting.org's Bev Harris deserves much credit here, both for helping to get the anti-trust ball moving when the merger was first announced in September, as we reported at the time, but also for providing the DoJ a great deal of information, statistics, financial and legal analysis demonstrating the monopolistic nature of the sale, and the harm it presents to our already in-tatters system of election in the U.S.. See BBV's additional coverage here.

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Article Categories: Diebold/Premier, ES&S, Election Reform, Dept. of Justice