Gemstar-TV Guide Reachs $10M Settlement With SEC
By Jeff Malester -- TWICE, 6/24/2004
Los Angeles — Gemstar-TV Guide International has reached an agreement with the Securities and Exchange Commission, resolving the SEC's investigation into the company for violating certain public reporting, record keeping and internal controls requirements.
The complaint against Gemstar said the company inflated revenue by about $250 million for the period from 1999 through 2002.
Under terms of the agreement, Gemstar will pay a civil penalty of $10 million, without admitting or denying the allegations. The funds, which have already been set aside, will be distributed to shareholders.
The SEC had filed a lawsuit against Gemstar Wednesday, then agreed to settle.
The revenue had been inflated, said investigators, by the company recording revenue from expired or contested licensing agreements.
Gemstar, which offers technologies, products and services targeted at the television guidance and home entertainment needs of consumers, offers interactive program guide services and products.
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