According to the lawsuit, the election board's Dec. 1 certifications of the three e-voting systems did not comply with a new state e-voting equipment law enacted in August because the vendors were unable to provide the source code for proprietary, third-party software included in their voting systems.

The e-voting law, enacted to correct problems with the state's previous rules, requires the elections board to hold in escrow all software used by an e-voting system so it can be reviewed for security and accuracy prior to being certified, according to the lawsuit. Instead, the board certified the systems first and said the code reviews could take place "within 15 working days of the contract award." That provision is not included in the new state law, according to the EFF.

Mark Radke, marketing director for Diebold, said today the company withdrew because it can't meet the requirements of the new state law that it says is too stringent. The problem, he says, is that Diebold can't submit software code for third-party applications its systems use because they are not the owners of that code. Also, he said, the state law requires that applicants seeking to certify their e-voting systems and software must submit the names of all software developers who worked on the applications. That requirement is difficult to follow, he said.

"Because of the far-reaching scope of [the new law] ... that's where the problem comes in," Radke said. "If we don't meet the terms of the state law, it's a felony. We would like to see that requirement modified. As it stands now, I don't see how anyone can meet the requirements of providing all the engineers' names."

The company would like to continue to seek certification for its systems in the state if the law is changed, he said.