‘Dust’ Film Sheds Light on Lernout & Hauspie Fraud
A new Flemish film, “Dust,” is drawing attention for its inspiration from the infamous fraud case surrounding Lernout & Hauspie (L&H), a Belgian speech technology company that collapsed in 2001. Premiering at the Berlin Film Festival, the film has been selected for the Golden Bear, the festival’s top prize, and is set for release in theaters soon.
The Rise and Fall of Lernout & Hauspie
Founded in 1987 by Jo Lernout and Pol Hauspie, L&H quickly grew to prominence in the speech recognition industry. The company went public on NASDAQ in 1995 and, at its peak, boasted a market capitalization of nearly $10 billion [1]. Headquartered in Ypres, Belgium, and Burlington, Massachusetts, L&H acquired several competitors, including Berkeley Speech Technologies in 1996 [1], and later Dictaphone and Dragon Systems in 2000 [1].
Fraud and Bankruptcy
Despite its initial success, L&H ultimately succumbed to a massive fraud orchestrated by its management. The company filed for bankruptcy in 2001 [1]. The fraud involved inflating revenues and assets, leading to the company’s downfall.
‘Dust’ – Fiction Inspired by Fact
The film “Dust,” written by Angelo Tijssens, takes inspiration from the L&H scandal, but is not a direct retelling of events. Tijssens began writing the script nine years ago [2]. He describes the film as a fictional work that grew from a seed planted by the story of L&H [2]. The film portrays two middle-aged men in suits who are about to be arrested for financial fraud [1].
Critical Reception
Early reviews of “Dust” describe it as a stylish and abstract drama that explores themes of friendship, fraud, and the egos of those in power [1]. However, some critics note that the film ultimately “peters out” without offering significant insight [1].
West Flanders Connection
The film’s connection to West Flanders, Belgium, is significant, as L&H was based in Ypres, in the Flanders Language Valley [1]. The story of L&H has sparked renewed interest in the region, with podcast maker Lennart Creël revisiting his series on the company .