Wired News: Diebold to Settle E-Voting Suit: "SAN FRANCISCO -- Diebold agreed Wednesday to pay $2.6 million to settle a lawsuit filed by California alleging that the electronic voting machine company sold the state and several counties shoddy voting equipment.
Although critics characterized the settlement as a slap on the wrist, Diebold also agreed to pay an undisclosed sum to partially reimburse Alameda, San Diego and other counties for the cost of paper backup ballots, ink and other supplies in last week's election. California's secretary of state banned the use of one type of Diebold machine in May, after problems with the machines disenfranchised an unknown number of voters in the March primary.
Faulty equipment forced at least 6,000 of 316,000 voters in Alameda County, just east of San Francisco, to use backup paper ballots instead of the paperless voting terminals. In San Diego County, a power surge resulted in hundreds of touch-screens that wouldn't start when the polls opened, forcing election officials to turn voters away from the polls.
According to the settlement, the North Canton, Ohio-based company must also upgrade ballot tabulation software that Los Angeles County and others used Nov. 2. Diebold must also strengthen the security of its paperless voting machines and computer servers and promise never to connect voting systems to outside networks."