Rabin & Peckel LLP Announces Class Action Against Lernout & Hauspie Speech Products, N.V. and Certain of Its Officers Alleging Violations of Federal Securities Law

Business Wire, Feb 17, 1999

NEW YORK--(BUSINESS WIRE)--Feb. 17, 1999--

The following is an announcement by the law firm of

Rabin & Peckel LLP:

A putative class action has been filed in the United States District Court for the Eastern District of New York, on behalf of all those who purchased Lernout Hauspie Speech Products, N.V. ("Lernout" or the "Company") common stock between Feb. 3, 1998 and Dec. 4, 1998, inclusive (the "Class Period").

The Complaint alleges that Lernout and certain of its officers violated the Securities Exchange Act of 1934 by making a series of materially false and misleading statements concerning Lernout's reported financial results. In particular, it is alleged that in connection with a number of acquisitions during the Class Period, the Company improperly wrote-off certain acquisition costs as "in process research and development" charges in violation of generally accepted accounting principles. The Complaint alleges that as a result of these false and misleading statements the price of Lernout common stock was artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages.

Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than 30 years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.

If you purchased Lernout common stock during the Class Period described above, you may no later than March 20, 1999 move the Court to serve as lead plaintiff, if you so choose. To serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this announcement or your rights or interests, please contact plaintiff's counsel, Joseph V. McBride, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at rabinlaw@ix.netcom.com.