June 2000: Lernout & Hauspie reports 1999’s revenue of $143.2 million from South Korea and Singapore, up from less than $300,000 in the prior year.
August 2000: The Wall Street Journal reports some Korean customers claimed by L&H do no business with the company. Others said their purchases were smaller than L&H reported. CEO Gaston Bastiaens steps down; former Dictaphone CEO John Duerden steps in.
November 2000: L&H says it will revise financial statements for two and a half years because of ‘errors and irregularities’; Jo Lernout and Pol Hauspie resigns as co-chairman; trading of L&H staff is suspended. L&H later files for Chapter 11 bankruptcy- law protection.
October 2002: SEC alleges that L&H fraudulently booked $175 million in sales related to the South Korea unit, among other schemes.
October 2004: KPMG, L&H’s auditor, agrees to pay $115 million to settle a shareholder suit that it had failed in its audit work.