Antitrust Suit Filed Over Voting Machine Manufacturer Merger

<http://legaltimes.typepad.com/blt/2009/09/antitrust-suit-filed-over-voting-machine-manufacturer-merger.html>http://legaltimes.typepad.com/blt/2009/09/antitrust-suit-filed-over-voting-machine-manufacturer-merger.html

A Patton Boggs partner has filed an antitrust 
suit over the merger of two large voting machine 
manufacturers on behalf of a smaller competitor.

The suit, Hart InterCivic Inc. v. Diebold, 
Incorporated and Election Systems and Software, 
Inc., was filed in the U.S. District Court for 
the District of Delaware on Friday, and an 
amended complaint was filed Monday. In the 
complaint, Texas-based Hart alleges that 
Diebold's sale of its voting machine business to 
ESS "poses a significant and imminent threat of 
irreparable harm to the other vendors like 
Hart....harm to the political subdivisions that 
constitute the jurisdictions that must purchase 
voting machines and election systems, and, 
ultimately, harm to the voters of the United 
States, in the form of loss of confidence in the 
integrity and security of the means by which 
elections are performed."


"If there’s a lack of competition in the voting 
machines market we don’t get to benefit from the 
competition," said Jonathan Rubin, the Patton 
Boggs partner who filed the suit. 


The deal was completed on Sept. 2 and announced 
by Diebold and ESS on Sept. 3. Hart says the deal 
would give ESS 68 percent of the voting-machine 
market. Hart currently has roughly 9 percent. It 
is asking the court for an injunction.

The company's competitors aren't the only ones 
with concerns. Acccording to the Associated 
Press, Sen. Charles Schumer (D-N.Y.) today 
<http://www.google.com/hostednews/ap/article/ALeqM5iiesbo_XRYKaqI5BTjx1nFgJGUzQD9ANBV9O1>sent
 
a letter to the Justice Department, raising 
concerns about the merger and asking for a review.

Diebold spokesman Mike Jacobsen said the company 
doesn't comment on pending litigation, but "from 
our perspective, the transaction is done." A 
spokesman for ESS could not immediately be 
reached for comment.

Posted by Carrie Levine on September 15, 2009 at 04:40 PM
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