Denyhosts 2.5 has been synced from debian and resolves this bug.
See https://launchpad.net/distros/ubuntu/+source/denyhosts/+bug/65761 for more info.
** Changed in: denyhosts (Ubuntu)
Status: Confirmed => Fix Released
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[UNMETDEPS] denyhosts has unmet dependencies
https://launchpad.net/bugs/65335