Cash, stock to Gemstar shareholders
EmptyFederal regulators will soon begin giving $83 million in cash and stock to shareholders of Gemstar-TV Guide International Inc. who were harmed by a suspected scheme to inflate revenues to meet financial targets.
The Securities and Exchange Commission said Friday it will start disbursing funds gained from several criminal and civil actions against Gemstar, former Gemstar executives and the audit firm KPMG.
The funds include disgorgement of salary and bonuses, exercised stock options and stock sales that resulted in a multimillion-dollar windfall for former company executives. The funds also include civil penalties won by the SEC.
The SEC settled actions against former Gemstar chief financial officer Elsie Ma Leung and three other officers, as well as KPMG and four members of its audit team.
A federal judge this year found that former Gemstar chief executive Henry Yuen guilty of securities fraud in an SEC lawsuit that claimed he inflated revenue by $248 million to boost the company's stock. The judge also found Yuen liable for misrepresenting facts to Gemstar's auditors and falsifying its books.
Yuen was ordered to pay $22.3 million in fines and penalties. He has not made any payments on the judgment to date, the SEC said Friday.