Diebold agrees to pay $25 million penalty to settle civil charges tied to SEC probe

[Joanne98]

ATM maker Diebold Inc. said Monday it will pay $25 million to settle civil charges of securities fraud under a tentative agreement with federal regulators.

Diebold also said it had been informed that the U.S. Attorney's office for the Northern District of Ohio will not bring criminal charges against the company over transactions and accounting issues covered in a Securities and Exchange Commission probe.

Regulators began reviewing the way Diebold reports revenue in early 2007. The probe concerned when revenue could be reported for services and product shipments. Diebold agreed to record sales only after its products are delivered or installed.

Under the agreement, Diebold said it will neither admit nor deny civil securities fraud charges, pay a penalty of $25 million and agree to an injunction against committing or causing any violations or future violations of federal securities laws.

Diebold recorded a charge of $25 million in the first quarter of 2009 related to the deal.

The agreement in principle with the staff of the SEC remains subject to the final approval of the SEC.

Shares of Diebold rose 75 cents, or 2.9 percent, to close Monday at $26.99.

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