Ex-General Counsel Sues Gemstar-TV Guide

Gemstar-TV Guide International Inc.’s former general counsel has sued the publisher of TV Guide magazine, claiming that he was fired after cooperating with a federal investigation of the company’s accounting.

Jonathan Orlick says he was fired June 5 “without cause” after he attempted to retrieve from his office several documents that the Hollywood-based company failed to provide to the Securities and Exchange Commission.

Gemstar said in a statement that it fired Orlick “for cause,” without providing details.

The SEC last week accused Gemstar’s former chief executive, Henry Yuen, and its former chief financial officer, Elsie Leung, of inflating company revenue by $223 million over two years.

Gemstar, which fired Yuen and Leung this year, has pledged to cooperate fully with the SEC investigation.

“Gemstar has retaliated and continues to retaliate against Mr. Orlick for his testimony before the SEC,” according to the suit filed June 6 in Los Angeles Superior Court.

Gemstar, which hasn’t been served with the lawsuit, said in a statement distributed by spokeswoman Christine Levesque that any allegations that the company isn’t cooperating with the SEC “are completely and categorically untrue.”

Orlick joined Gemstar’s predecessor, Starsight Telecast Inc., in 1996 and worked at Gemstar as deputy general counsel and senior vice president. In 2002, he was promoted to general counsel and executive vice president.

The suit seeks a court order to force Gemstar to pay Orlick’s legal bills as required under his employment contract. Orlick also seeks compensation and punitive damages for his firing.

Los Angeles County Superior Court Judge Jan A. Pluim on Friday denied Orlick’s request to immediately compel Gemstar to pay his legal fees.

Orlick said he has testified before the SEC on 13 occasions this year and expects that he will be called to testify further.

Gemstar Chief Executive Jeff Shell opened a review of the company’s accounting after replacing Yuen in October. Shell formerly was an executive at Rupert Murdoch’s News Corp., which owns a 43% stake in Gemstar.

Gemstar’s shares, which traded above $101 in March 2000, were unchanged Tuesday at $4.77 on Nasdaq.