Bloomberg reports that the former executive, John D. Shagoury, testified on January 9th in federal court in Boston that he didn’t blame the bank for the 2000 all-stock deal that was rendered worthless months later when buyer Lernout & Hauspie Speech Products NV collapsed in an accounting fraud and filed for bankruptcy. U.S. District Court Judge Patti Saris said Tuesday that the jury can review a transcript of Shagoury’s testimony.
Dragon founders Jim and Janet Baker and two other shareholders, Robert Roth and Paul Bamberg, are suing for gross negligence and intentional misrepresentation. The four sold a small part of their Lernout & Hauspie stock for $11 million before the fraud was exposed. The Bakers lost the technology they spent decades developing.
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image: © James Kuhn