PracticeConsultingLernout & Hauspie co-founders arrested

Lernout & Hauspie co-founders arrested

The founders of speech recognition software company Lernout & Hauspie (L&H) have been arrested on fraud allegations and are being held in a Belgian prison.

Jo Lernout and Pol Hauspie were reportedly arrested yesterday and charged with fraud. The allegations include stock manipulation and falsification of documents. Both are expected to appear in court on Monday morning.

L&H has been granted bankruptcy protection by a Belgian court, which said that it faces claims from creditors totalling almost £350m. It is also thought that the company has hired Credit Suisse First Boston to look at the possibility of a sale of its assets to repay the debt.

Both founders resigned from the company last year after it was revealed that revenue projections had been inflated, although they remain major shareholders.

L&H stock has been suspended from trading on the both the USA and European Nasdaq exchanges.

Links

L&H publishes report over accounts hole

Call for worldwide insolvency standards.

L&H shareholders to fight KPMG

Lernout & Hauspie granted reprieve

Lernout & Hauspie goes into Chapter 11

L&H bankruptcy follows KPMG probe

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