A class action lawsuit has been filed against speech recognition developer Lernout & Hauspie, claiming the company provided "misleading" information about its business and financial results.
vnunet.com, 16 Aug 2000
A class action lawsuit has been filed against speech recognition developer Lernout & Hauspie (L&H), claiming the company provided "misleading" information about its business and financial results.
US law firm Cauley and Geller filed the suit on behalf of all individuals and institutional investors that purchased common stock of L&H's speech products between 28 December 1999 and 7 August 2000.
L&H, Europe's largest maker of speech recognition software, said yesterday that it will conduct a mid-year interim audit following "concerns about the division's financial results".
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The lawsuit filed today claims that the "company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about its business and financial results".
It also alleges that L&H included overstated and/or fictitious sales in Korea, which meant its stock traded at falsely inflated prices. Cauley and Geller has said plaintiffs must file appropriate motions by 8 October.
L&H said it was unable to comment at this time.
The two co-founders of Lernout & Hauspie have resigned as joint chairmen and managing directors as the Belgian speech recognition specialist attempts to recover from its financial woes.
The US Securities and Exchange Commission has launched an investigation into Belgian-based voice recognition specialist Lernout & Hauspie following recent speculation about its accounting practices.
The chief executive of Belgian speech recognition vendor Lernout & Hauspie (L&H) has resigned following weeks of speculation surrounding the company's trading practices.
Lernout & Hauspie, Europe's largest maker of speech recognition software, said it will conduct a special audit after its shares tumbled last week on rumours of inconsistencies in its Korean business.
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