YeeeeeeeHaaaaaaaa!!! (w/ Dr. Dean style enthusiasm)
Thanks for the heads up Mike. Excellent news! I haven't kept up with the news on GMST since it's been so long since I've owned any shares. Let's hope they all get what they deserve. Rory
Report: SEC sues ex-Gemstar execs
By Carolyn Pritchard, CBS MarketWatch.com
Last Update: 11:26 PM ET Jan. 5, 2004
SAN FRANCISCO (CBS.MW) - The U.S. Securities and Exchange Commission on Monday sued three former Gemstar-TV Guide International executives, claiming they conspired to inflate the company's revenues to mislead investors about its prospects, according to press reports.
The SEC named former Gemstar co-president Peter Boylan, Jonathan Orlick, Gemstar's former general counsel, and Craig Waggy, ex-chief financial officer of Gemstar subsidiary TV Guide, according to Reuters, citing a civil lawsuit filed in federal court in Los Angeles.
Last June, the SEC charged Henry Yuen, Gemstar's former CEO, and Elsie Leung, the former CFO, with inflating Gemstar's revenue by $223 million.
Following its revelations about the irregularities, Gemstar posted a 2002 loss of $6.4 billion as a result of reductions in goodwill and restated past results.
The SEC claims the three people named today cooperated with a widespread scheme to inflate advertising revenue, and to count money that Gemstar first paid to third parties in so-called "round trip" transactions as revenue, according to the Associated Press.
"None of the individuals named in today's SEC filing currently serves Gemstar-TV Guide in any capacity," said Gemstar TV-Guide (GMST: news, chart) in a statement released late Monday. "Following the completion of a comprehensive management and corporate governance restructuring in November 2002, an entirely new senior management team was put into place at Gemstar-TV Guide."
Shares of Gemstar ended Monday's session up 5 cents at $5.13.
Carolyn Pritchard is a reporter for CBS.MarketWatch.com in San Francisco |
