The facts of this case are described at length in the court's june 7, 2005 memorandum and order denying the motions to dismiss on behalf of individual defendants jozef lernout, pol hauspie, and gaston bastiaens. Lernout & hauspie speech products has been accused of securities fraud if you are a member of any of their investment plans or profit sharing retirement plans and purchased or held the company's stock in one of those plans during the periods april 28, 1998 to november 8, 2000, you may have a claim. The reports present the clearest case so far that the rise of lernout & hauspie was based on deceit and not dazzling advances in computerized speech recognition as the company purported.
Lernout & hauspie speech products, nv, (l&h) filed for relief under the bankruptcy code in the united states bankruptcy court for the district of delaware on. Lernout & hauspie speech products the unique characteristics in l&h that made it prone to fraud were the rapid expansion and acquisition of companies beyond their boundaries, and the inability to oversee these operations.
Stonington partners, inc v lernout & hauspie speech products nv, 310 f3d 118 (3d cir2002) prior to the adjudication of the remand in this court, the debtor withdrew its quest to enjoin stonington from pursuing its claim in the belgian proceedings, effectively rendering the resolution of the remand from the court of appeals moot. Lernout & hauspie speech products nv, is a belgian corporation formed in 1987 during the relevant period, l&h was a developer, licensor and provider of speech and language technologies, headquartered in ieper, belgium and burlington, massachusetts. Abstract the case of the lernout & hauspie speech products (l&h) provides a negative example to illustrate the importance of corporate governance, ethics and audit responsibility.
The civil case is terminated on december 18, 2006, the plaintiffs filed a motion for default judgment as to defendants jo lernout, pol hauspie, and carl dammekens in january 2007, judge patti b saris granted the motion for default judgment. Lernout & hauspie speech products, nv: financing from start-up through ipo case solution this case is about technology published: 07 jan 2000 on 27 november 1995, l&h got an ipo prices proposition of h and q at the low conclusion of the prices variety, right after l and h had actually declined propositions by robertson stephens. Lernout & hauspie case study lernout & hauspie speech products earnings management lack of transparency no legislation flawed corporate governance structure.
Lernout & hauspie was founded in 1987 by jo lernout and pol hauspie, two entrepreneurs from ypres, west flanders, whose goal was to teach computers to understand spoken language - an idea that must have seemed to belong to the realm of science fiction at the time, and which has still not been fully realised. Justia us law case law federal courts district courts delaware district of delaware 2004 in re lernout & hauspie speech products nv in re lernout & hauspie speech products nv, 308 br 672 (d del 2004. Docket no civil action no 01-594-jjf, case no 00-4397 (jhw) through 00-4399 (jhw) judges joseph james farnan attorney(s. A web based products auctioneer that is definitely the greater part owned from the microsoft co-founder paul allen's vulcan ventures [is] closing its doorways right after lernout hauspie speech products nv financing from startup through ipo failing to lift extra money.
United states district court for the district of massachusetts in re lernout & hauspie speech ca no: 99-10237 (ng) products, nv securities lead docket number. Of debtor lernout & hauspie speech products, nv (i) for the period june 1, 2003 through april 2, 2004 on an interim basis and (ii) final allowance of compensation for. Cases lernout & hauspie deminor advises more than 13,000 private investors who have suffered losses following the disclosure of accounting fraud and the ensuing bankruptcy of lernout en hauspie the criminal proceedings led to the conviction of certain managers and the auditor of the company.
The founders of lernout & hauspie, a maker of speech-recognition software, were found guilty of fraud and sentenced to five years in jail for their roles in an accounting scandal that led to the. Both cases arose from a brazen, world-wide fraud at lernout & hauspie speech products, nv, in which the software company allegedly booked fictitious revenues from shell companies that had been set up and financed by the company itself. Lernout & hauspie speech products, nv securities litigation in most cases, the primary company-defendant actually issued the securities that are the subject of. In the matter of lernout & hauspie speech products, case nos case nos 00-4397-jhw to 00-4399-jhw, mem op at 19 the third circuit's decision in.