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L&H files for Chapter 11 bankruptcy
Faced with plummeting revenue, mounting shareholder lawsuits, and investigations by the U.S. Securities and Exchange Commission (SCAN, 10/11/00) and the Nasdaq stock exchange, Belgian voice recognition technology provider Lernout & Hauspie has filed for
Faced with plummeting revenue, mounting shareholder lawsuits, and investigations by the U.S. Securities and Exchange Commission (SCAN, 10/11/00) and the Nasdaq stock exchange, Belgian voice recognition technology provider Lernout & Hauspie has filed for Chapter 11 bankruptcy protection.
L&H has partnerships and strategic alliances with most PACS and RIS vendors. The firm says it will continue operating as it seeks to reorganize its debt.
The SEC and Nasdaq began investigating L&H earlier this year in relation to questionable accounting practices. The SEC is focusing on L&H's business dealings in Korea and Singapore. Revenue in those areas appeared to be strong last quarter but could turn out to be part of a complicated bundle of investments connected to the FLV Fund, a Belgian venture capital company linked to L&H founders Jo Lernout and Pol Hauspie. n
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