Excerpt:"A group of Belgian and German banks are eagerly awaiting the
outcome of an external audit into the finances of beleaguered Belgian speech
recognition software company Lernout & Hauspie Speech Products NV (LHSP).
KPMG Peat Marwick (X.KPM) is now auditing Lernout & Hauspie after the
company admitted "errors and irregularities" in its 1998, 1999 and first-half 2000
financial statements. The audit should be completed in December. Creditors
have reason to be nervous as Lernout & Hauspie shares have been suspended
indefinitely on the Easdaq and Nasdaq markets.
The company is also facing a U.S. Securities and Exchange investigation and at
least one class action law suit. The company admitted the various difficulties will
slow down sales momentum."
