Case Page

 

Case Status:    DISMISSED    
On or around 04/04/2002 (Other)

Filing Date: January 19, 1999

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.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Peripherals
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: LHSP
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Massachusetts
DOCKET #: 99-CV-00339
JUDGE: Hon. David G. Trager
DATE FILED: 01/19/1999
CLASS PERIOD START: 02/03/1998
CLASS PERIOD END: 12/04/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  3. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 99-CV-10237
JUDGE: Hon. David G. Trager
DATE FILED: 07/22/1999
CLASS PERIOD START: 02/03/1998
CLASS PERIOD END: 12/01/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 2109
    617.542.8300 617.230.0903 · info@bermanesq.com
  2. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date