Lernout & Hauspie (L&H) was the world’s leading provider of speech and language technology products, solutions, and services to businesses worldwide. Both Microsoft and Intel invested millions in L&H. however, accounting scandals and fraud allegations sent the company’s stock crashing, and forced the firm to seek bankruptcy protection in Belgium and in the US. Selected information was gathered concerning L&H operations:
• Consolidated revenue increased 184% from 1997 fiscal year to 1998 fiscal year
• Revenue in South Korea, which has a reputation as a difficult market for foreign companies to enter, increased from $97000 in the first quarter of 1999 to approximately $59 million in the first quarter of 2000
• In the second quarter of 2000, …show more content…
The company was based in Ypres, Flanders, in what was then called the Flanders Language Valley. Lernout & Hauspie was founded in 1987 by Jo Lernout and Pol Hauspie. After a difficult start, it quickly grew, and, in 1995, it went public on the NASDAQ (LHSP), and was also quoted on the now-defunct Brussels-based EASDAQ exchange. Its headquarters were in Ieper, Belgium, and in Burlington, Massachusetts, USA. At its peak, Lernout & Hauspie had a market capitalization of almost US$10 …show more content…
Further investigation by WSJ staffer Jesse Eisinger led to the revelation on 8 August 2000 of a major financial scandal involving fictitious transactions in Korea and improper accounting methodologies elsewhere. In April 2001, founders Jo Lernout and Pol Hauspie, as well as former CEO Gaston Bastiaens, were arrested in what is considered one of the largest corporate scandals in history prior to Enron. Lernout & Hauspie finally went bankrupt on 25 October 2001 after having struggled for a
• Consolidated revenue increased 184% from 1997 fiscal year to 1998 fiscal year
• Revenue in South Korea, which has a reputation as a difficult market for foreign companies to enter, increased from $97000 in the first quarter of 1999 to approximately $59 million in the first quarter of 2000
• In the second quarter of 2000, …show more content…
The company was based in Ypres, Flanders, in what was then called the Flanders Language Valley. Lernout & Hauspie was founded in 1987 by Jo Lernout and Pol Hauspie. After a difficult start, it quickly grew, and, in 1995, it went public on the NASDAQ (LHSP), and was also quoted on the now-defunct Brussels-based EASDAQ exchange. Its headquarters were in Ieper, Belgium, and in Burlington, Massachusetts, USA. At its peak, Lernout & Hauspie had a market capitalization of almost US$10 …show more content…
Further investigation by WSJ staffer Jesse Eisinger led to the revelation on 8 August 2000 of a major financial scandal involving fictitious transactions in Korea and improper accounting methodologies elsewhere. In April 2001, founders Jo Lernout and Pol Hauspie, as well as former CEO Gaston Bastiaens, were arrested in what is considered one of the largest corporate scandals in history prior to Enron. Lernout & Hauspie finally went bankrupt on 25 October 2001 after having struggled for a