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The Boston Globe

Business

Jury clears bank in lawsuit

It says Dragon woes not Goldman’s fault

A federal jury determined Wednesday that Goldman Sachs was not to blame for the multimillion-dollar loss the owners of Dragon Systems Inc. incurred after selling their Boston-area speech recognition company to a company that collapsed in a massive fraud soon after the acquisition.

The verdict came in a three-week trial in US District Court in Boston that capped off years of litigation over the sale of Dragon Systems in 2000 to Belgium-based Lernout & Hauspie Speech Products for $580 million in stock. Goldman had acted as adviser to Dragon and its executives.

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