Ex-Gemstar Exec Settles Suit

Gemstar-TV Guide International Inc.’s former chief operating officer agreed to pay $600,000 to settle a Securities and Exchange Commission lawsuit over claims he helped mislead investors.

The SEC in January accused Peter Boylan, 40, of participating in fraudulent reporting of advertising sales to inflate Gemstar’s revenue by about $248 million from June 1999 through September 2002. He didn’t admit to or deny any of the allegations, the SEC said.

The agency is pursuing its case against four other former Gemstar executives. Gemstar, the publisher of TV Guide magazine, in June said it would pay $10 million to settle the SEC’s allegations.

Boylan was co-president and co-chief operating officer of Gemstar from July 2000 to April 2002. A call to Stephen Silbert, Boylan’s attorney, wasn’t immediately returned.

Boylan reached a tentative agreement with the SEC to settle the case last month, pending approval by the agency’s commissioners. The agreement must still be approved by a judge. Half of Boylan’s $600,000 settlement is a civil fine and half is the return of improperly received profit.

Rupert Murdoch’s News Corp. owns a controlling stake in Gemstar with about 41% of the shares.

In addition to TV Guide, Hollywood-based Gemstar provides technology that allows cable television companies and electronics makers to provide on-screen TV program listings.

The SEC’s case against the four other Gemstar executives is set for trial in January.