- 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
- 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
- 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.