No legal disability for L&H's continuing expansion into medical transcription market

Burlington 24 January 2000Lernout & Hauspie Speech Products made public that the United States District Court for the District of New Jersey has denied a motion filed by MedQuist against L&H and certain of its officers seeking to enjoin L&H's entry into the medical transcription market. The motion was part of an action, filed on January 14, 2000, seeking a preliminary injunction to prohibit L&H from improper use and dissemination of MedQuist's confidential information and to enjoin L&H from entering the medical transcription market.

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A hearing on the matter was held on Friday, January 21, 2000. At the hearing, L&H reaffirmed its position that is has no need for or intention of using any confidential information provided to L&H by MedQuist. While the Court granted MedQuist a preliminary injunction that precluded L&H from using MedQuist's customer list, it however denied the motion for a preliminary injunction against L&H's entry into the medical transcription market. The Court directed that the parties proceed with discovery to prepare for a future hearing.

L&H maintains that it has complied with its contractual obligations with MedQuist and that those obligations in no way preclude it from further pursuing the medical transcription business. Moreover, L&H has no intention of using any confidential information that may have been provided to it by MedQuist. As a result, L&H believes that both MedQuist's claims and MedQuist's request that L&H be precluded from further expanding into the medical transcription business are without merit and it vigorously defends this position.

L&H also announced the completion of its acquisition of Omni-Med Transcription Inc., a leading medical transcription company, based in Madison, Wisconsin. The company believes that the acquisitions of Omni-Med and the Florida offices of Rodeer systems, together with its pending acquisition of Linguistic Technologies (LTI), provide it with the additional resources to support its strategy to create a separate legal entity focused on the health care market.

Gaston Bastiaens, L&H's president & CEO commented that with the combined resources from these groups, the company is developing an enterprise health care solution. Mr. Bastiaens expects the solution will help health care organisations reduce turn-around time for medical reports, improve clinical data capture, enhance overall quality of patient care, and bring down transcription costs while improving transcriptionist productivity. More news on L&H's recent and future acquisitions is available in the VMW February 2000 issue's article L&H turns Health Care Solutions business group into separate legal entity status.


Leslie Versweyveld

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