Kohler Shower Diverter Replaced and Water is Still Draining from Shower and Spout.

[aprilmedusa]

I have a Kohler 3 way in wall shower diverter that pulls out for shower, push in for spout. When you would pull out for the shower it was draining water from the faucet and the shower attachment. I replaced the shower diverter (the hot and cold stems had recently been changed also). This did not fix the problem at all. Water still is coming out of the faucet and the shower when you push in or pull out. What other issue could this be? I'm at a loss.