DoJ Now Investigating Diebold/ES&S Merger

Anti-trust probes also said underway in 14 states...

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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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Reader Comments on

DoJ Now Investigating Diebold/ES&S Merger

5 Comments

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5 Responses

  1. 1)
    Minnie said on 12/20/2009 @ 2:07pm PT: [Permalink]

    You are such jerks about commenting – no one but brad-bots allowed.

    And your ignorant enforcer, 99 can’t even string a coherent thought together between a capitalized word and a period.

    You 2 are quite the pair in your empty and meaningless forum – enjoy the silence today!

    [Ed Note: The user posting above was banned long ago due to an inability to follow our few simple rules for posting here, including not posting under different names. They were not banned for whining or complaining or disagreeing or even for revealing themselves to be complete a jackass (over and again). See more in my comments in response below. – BF]

  2. 3)
    zapkitty said on 12/20/2009 @ 4:47pm PT: [Permalink]

    They’ll say “We’ve investigated but found that we’ll just have to allow it”… and you’ll barely notice the puppet strings leading from the DoJ to the Administration and the subsequent strings leading from the Administrations to the corporations.

    The oligarchs may not even notice much as this sort of stuff is handled by the standard reflex actions of the corporations.

  3. Avatar photo
    4)
    Brad Friedman said on 12/20/2009 @ 8:57pm PT: [Permalink]

    “Minnie” (who has violated the rules over and over again by posting under different names, and has thus been banned said):

    You are such jerks about commenting – no one but brad-bots allowed.

    I guess you don’t read many comments here, Minnie, otherwise you’d realize what a fool you just made yourself out to be. You’ve been banned because you can’t seem to follow the few rules for commenting here at The BRAD BLOG.

    Normally, since you were already banned (many times), I’d simply delete your comment, with a note explaining transparently that it’s been deleted because your a serial rule breaker who has been banned multiple times. But as I’ve been on the road all day, and couldn’t respond until now, and others may have read your nonsense, I figure I’ll keep it up so I can respond to your idiocy directly.

    And your ignorant enforcer, 99 can’t even string a coherent thought together between a capitalized word and a period.

    You sure told her, “Minnie”! Very persuasive argument. Good work! You have impressed us all. See ya!

  4. 5)
    miles oravetz said on 12/21/2009 @ 10:50am PT: [Permalink]

    Dear Sir. The Washington Spectator, Editor Lou Dubose said, “Interesting (and troubling) story on the Post salons.” See how most of Jones Day largest clients like Chevron, Pfizer, Abbott etc are a hot link on my web page. http://www.webetrayamerica.com “Jones Day provides comprehensive legal services on an international basis in the areas of trademark and copyright laws.” and “offers clients exceptional access to trademark and copyright lawyers around the world. “We have the “bench strength” and depth to handle any IP problem imaginable.”…but we can’t handle WeBetrayAmerica.Com

    joins WeBetrayAmerica.com hot link under Jones Day clients link Jones Day and client, Sherwin-Williams, implement strategies to undermine the Constitution and Bill of Rights. Senator Lieberman and Dodd assist in stopping SEC investigations. American freedom and liberty sabotaged by The Peoples Enemy, Jones Day and Sherwin-Williams . The Washington Spectator Editor , Lou Dubose said, ” I wish you the best in your campaign against Jones Day.” Pulitzer Prize material. Go to http://www.webetrayamerica.com

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