Lernout and Hauspie were found guilty of fraud and given the maximum sentence requested by the prosecution - five years imprisonment, although two years of that is suspended. They were each fined €24,789. Directors Nico Wilaert and Gaston Bastiaens were given the same sentences, although three years of Bastiaens' sentence were suspended. Adviser Thomas Denys, who died last weekend, had received two years, with one suspended, and was fined €2,478. The same sentence went to Tony Snauwaert, responsible for helping to build up the network of fictitious clients who made LHSP look so attractive to investors.

The company's former financial director Carl Dammekens received a six-month suspended sentence and was fined €2,478. Eight other executives were acquitted. Dexia, the bank of LHSP, was also acquitted. The court found the bank had not collaborated in the fraud scheme. Auditors KPMG, likewise, were found not to be responsible. However, their representative William Van Aerde was found to have been "careless" in his handling of the matter and fined €2,478.

The decision could leave the door open to pursuits by shareholders, who had been hoping for the conviction of either Dexia or KPMG, or both. Van Aerde could theoretically be sued and claims made to his insurer for damages. There are about 15,000 small shareholders involved in the case, chasing claims of up to €1 billion.

The civil part of the trial comes later, but an acquittal in one means the party is out of reach in the other. The lawyer of KPMG, who also represents Van Aerde, said investors would have trouble making their case in the civil part. Van Aerde, meanwhile, will appeal his conviction to the Cassation Court, on the grounds he was convicted of neglect only and not of fraud. However, prominent experts argue his culpability may leave KPMG open to claims.

Professor Bernard Tilleman, professor of business law at the Catholic University of Leuven, and Professor Thierry Vansweevelt of the University of Antwerp both agreed that the company can be sued over the actions of their representative, in this case Van Aerde.

Jo Lernout also intends to appeal to Cassation, but Hauspie, identified in the court's verdict as the "brains" behind the fraud scheme, will not.