Voice recognition founders arrested for stock manipulation

The founders of speech recognition company Lernout & Hauspie are currently behind bars in Belgium having been charged with false...

The founders of speech recognition company Lernout & Hauspie are currently behind bars in Belgium having been charged with false accounting and manipulation of the firm's share price.

Jo Lernout and Poul Hauspie were charged last week, the day before president and chief executive Philippe Bodson revealed L&H had overstated its 1998, 1999 and 2000 financial results by $373m.

Shareholders were last week warned that the company was almost out of cash and a sale of all or part of the business was likely.

Lernout & Hauspie's troubles began last August when questions relating to very impressive sales in Korea were raised by the US business paper, the Wall Street Journal. A profit warning was issued in September following a share price plummet. In November, the company admitted that there were some irregularities in its accounting practices. Shares were then suspended from trade on Nasdaq. The company has filed for bankruptcy protection in the US and Belgium.

Both Lernout and Hauspie are expected stay in custody for at least a fortnight.

Emma Nash

Read more on PC hardware

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close