Dragon was sold to L&H, which had been engaging in fraud and went into brankrupcy; some of the technology was apparently sold to Visteon, some to ScanSoft (which then acquired Nuance, and took on its name).
The founder, Jim Baker, lost out and unsuccessfully tried to sue Goldman Sachs (who had been advising him).
And yet, even today what happened next to the Bakers seems remarkable. With Goldman Sachs on the job, the corporate takeover of Dragon Systems in an all-stock deal went terribly wrong. Goldman collected millions of dollars in fees — and the Bakers lost everything when Lernout & Hauspie was revealed to be a spectacular fraud. L.& H. had been founded by Jo Lernout and Pol Hauspie, who had once been hailed as stars of the 1990s tech boom. Only later did the Bakers learn that Goldman Sachs itself had at one point considered investing in L.& H. but had walked away after some digging into the company.
