Feeds

L&H subpoeanead by SEC

Accounts sous investigatione

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Speech and language specialist Lernout & Hauspie has been subpoeanaed by the SEC because the agency wishes to investigate its previous years' accounts.

Such an action is more serious than a previous action by the SEC concerning how research in progress was accounted for - a move that the SEC also made against a considerable number of other US companies.

This time the investigation is centred on what are called related party transactions between entities in which the co-chairmen Jo Lernout and Pol Hauspie do or may have an interest, and L&H the company. One example is the enigma of the Brussels Translations Group that was acquired by L&H after it completed a contract to improve Internet machine translation for L&H. It is unusual that the $62 million of goodwill shown on L&H's books is being amortised over 15 years, in view of the speed of development of the technology.

Messrs L&H are adamant that there was no L&H money in the company, and the original shareholders - as the Belgisch Staatsblad of 28 March 1997 makes clear - were Van Deun Consult of Arendonk, Belgium and
Cevennes SA, a company registered in Luxembourg.

A question about the accuracy of L&H's claims for its substantial claims about its Korean sales was raised in a Wall Street Journal article last month.

The worldwide mid-year audit that L&H called for from it auditor KPMG after the allegations is still in progress. L&H said in a statement that it was cooperating fully with the SEC investigation. In addition, L&H's audit committee has initiated an investigation and retained counsel, although whether this is a defensive move or whether defamation actions are contemplated is not known. The criterion for judgement will be whether shareholders have suffered as a result of any relate party transactions. Meanwhile, L&H says it is business as usual.

Marc Cohodes of Rocker Partners, a prominent shorter of L&H stock, is jubilant at the SEC news, claiming it was "game/set/match" and "a total scam here". Last night, L&H's share price closed at $15.125, down $6.125 on the day. ®

Related Stories

L&H returns fire as the class actions roll in
Urbane Bastiaens heads for L&H ambassador role
After Gaston, new L&H CEO focuses on nuts and bolts
Bastiaens bails from L&H
The Reg visits Korea to assess L&H's sales
L&H goes on Korean offensive against WSJ
The trouble with LearnHowTospeak Korean

Choosing a cloud hosting partner with confidence

More from The Register

next story
Microsoft on the Threshold of a new name for Windows next week
Rebranded OS reportedly set to be flung open by Redmond
Apple: SO sorry for the iOS 8.0.1 UPDATE BUNGLE HORROR
Apple kills 'upgrade'. Hey, Microsoft. You sure you want to be like these guys?
SMASH the Bash bug! Apple and Red Hat scramble for patch batches
'Applying multiple security updates is extremely difficult'
Business is back, baby! Hasta la VISTA, Win 8... Oh, yeah, Windows 9
Forget touchscreen millennials, Microsoft goes for mouse crowd
ARM gives Internet of Things a piece of its mind – the Cortex-M7
32-bit core packs some DSP for VIP IoT CPU LOL
Lotus Notes inventor Ozzie invents app to talk to people on your phone
Imagine that. Startup floats with voice collab app for Win iPhone
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.