Diebold can’t unload its troubled e-voting unit, reports the Associated Press. So, on the heels of California decertifying the use of e-voting for its February primaries, the embattled e-voting developer is turning lemons into lemonade. It is spinning that division off into a new brand, Premier Election Systems, which effectively distances the main brand from the controversial offspring.

TR blogger Paul Mah told us about Diebold’s latest defects, revealed in a study commissioned for California’s Secretary of State. That analysis showed multiple vulnerabilities of the systems, and Dan Rather reported on yet more e-voting problems last week. A slide in Diebold stock value followed these latest events in a series of e-voting controversies.

The multiple e-voting blunders may someday join the list of all-new lows in IT industry blunders, and I remain happy that, up here in the Silicon Forest, Oregon still uses vote-by-mail.

Will Diebold stock value rebound by moving the elections subsidiary away from the main brand? Does this affect the cred of IT in general?