Lernout & Hauspie Speech Products, N.V.

Company and Case Information

IMPORTANT INFORMATION | INDEX OF FILINGS | SEARCH

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright (c) 2001
Stanford Law School

Lernout & Hauspie Speech Products, N.V. Conclusion: According to the docket dated, May 16, 2002, the First Circuit Court of Appeals issued a Mandate on April 4, 2002, dismissing the appeal. Earlier, on July 31, 2000, the Court entered a Memorandum and Order by U.S. District Judge Nancy Gertner granting the defendants' motion to dismiss. A Notice of Appeal was soon after filed by the plaintiffs.

On April 16, 1999, a Notice of voluntary dismissal without prejudice was filed and the case and all related cases in the U.S. District Court for the Eastern District of New York were closed. The case continued in the District of Massachusetts.

The class action suit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the complaint alleges that Lernout & Hauspie Speech Products had improperly accounted for "in-process" research and development of other voice recognition and translation software companies it had acquired since at least 1996. In accounting for those acquisitions, Lernout wrote-off up to 60% of the in-process research and development of the acquired companies. The SEC had commented that these write-offs were excessive. Lernout was forced to assign the excess R&D write-offs to goodwill recorded for its various acquisitions. As a result, the Company was forced to amortize more goodwill, thereby incurring material, added expenses during the Class Period. This, in turn, materially reduced the income the Company reported and will report in the future. Further, during the Class Period, the individual defendants and other Lernout insiders sold 528,176 shares of their personal Lernout holdings for proceeds in excess of $23 million.

Several purported class actions have also been filed in the U.S. District Court for the District of Massachusetts. The first complaint was filed on February 5, 1999.

INDUSTRY CLASSIFICATION:
SIC Code: 3577
Sector: Technology
Industry: Computer Peripherals

COMPANY/ISSUER NAME:	Lernout & Hauspie Speech Products, N.V.
COMPANY/ISSUER TICKER:	LHSP
COMPANY WEBSITE:	http://www.lhs.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Page, et al. v. Bastiaens, et al.

COURT: E.D. New York	DOCKET NUMBER: 99-CV-00339
JUDGE NAME: Hon. David G. Trager
DATE FILED: 01/19/1999	SOURCE: Business Wires
CLASS PERIOD START: 02/03/1998	CLASS PERIOD END: 12/04/1998
TYPE OF COMPLAINT: Unamended/Unconsolidated
PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
Berger & Montague PC 1622 Locust Street, Philadelphia, PA, 19103 (voice) 800.424.6690, (fax) 215.875.4604, investorprotect@bm.net Stull, Stull & Brody (New York) 6 East 45th Street, New York, NY, 10017 (voice) 310.209.2468, (fax) 310.209.2087, SSBNY@aol.com Weiss & Yourman (New York, NY) The French Building, 551 Fifth Ave., Suite 1600, New York, NY, 10126 (voice) 212.682.3025, (fax) 212.682.3010, info@wyca.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
U.S. District Court Civil Docket
Type: Docket		Date on the document: 04/16/1999

REFERENCE COMPLAINT

Alabaster, et al. v. Bastiaens, et al.

COURT: D. Massachusetts	DOCKET NUMBER: 99-CV-10237
JUDGE NAME: Hon. Nancy Gertner
DATE FILED: 07/22/1999	SOURCE: Business Wires
CLASS PERIOD START: 02/03/1998	CLASS PERIOD END: 12/04/1998
TYPE OF COMPLAINT: Consolidated and/or Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Berman DeValerio Pease Tabacco Burt & Pucillo (MA) One Liberty Square, Boston, MA, 2109 (voice) 617.542.8300, (fax) 617.230.0903, info@bermanesq.com Weiss & Yourman (New York, NY) The French Building, 551 Fifth Ave., Suite 1600, New York, NY, 10126 (voice) 212.682.3025, (fax) 212.682.3010, info@wyca.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
U.S. District Court Civil Docket
Type: Docket		Date on the document: 05/16/2002

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.

Go to Search page | Go to Case Index page | Back to Top

�