Accounting & Tax

Gemstar Settles with Former CFO

A settlement is still being arbitrated with former chairman and CEO Henry Yuen.
Stephen TaubJune 13, 2006

Gemstar-TV Guide International announced that former chief financial officer Elsie Leung relinquished all claims to roughly $8.4 the company had been holding in a segregated account as part of a settlement stemming from the company’s November 2002 restructuring.

According to the company, Leung also released claims for reimbursement of legal fees, claims against the company’s directors’ and officers’ insurance carriers, and any future claims for advancement of legal expenses or indemnification. In exchange, the company has released all claims against Leung.

“We are very pleased with this settlement which brings to a close an extended period of litigation and arbitration with Ms. Leung,” said executive vice president and general counsel Stephen Kay, in a statement.

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The settlement does not affect the approximately $30.5 million in funds that are the subject of disputes being arbitrated between the company and former chairman and chief executive officer Henry Yuen, the company stressed. Those funds are being held in a separate segregated account.

In 2003, the Securities and Exchange Commission filed securities fraud charges against Leung and Yuen for their roles in a scheme to inflate Gemstar’s licensing and advertising revenues. In February, Leung agreed to settle with the SEC and pay more than $1.3 million; charges are still pending against Yuen.