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ATM reseller Hanco Systems Inc. has filed a lawsuit against Diebold Inc., claiming the Canton, Ohio company sells defective ATMs, Allentown, Pa., newspaper The Morning Call reported. The suit was filed in federal court in Cleveland Dec. 21.

Between 1997 and 1999, the suit claims, Peachtree City, Ga.-based Hanco received about 400 ATMs from Diebold that required software upgrades. The ATMs, intended for use in the United States, were plagued with mechanical problems and cost thousands of dollars to repair, the suit states.

The suit also claims that Diebold has inadequate repair services, according to The Morning Call.

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