Gemstar Settles Shareholder Suits

Gemstar-TV Guide International Inc., the publisher of TV Guide, said Monday that it had settled the remaining shareholder lawsuits that claimed the company inflated revenue from 1999 through 2002 to boost its stock price.

Gemstar spokesman Whit Clay would not disclose financial terms of the settlement.

The Hollywood-based company said in a statement that its previously established reserves “are expected to be sufficient.” Clay said Gemstar had not disclosed the amount of its reserves.

“The company will not admit any wrongdoing in settling the cases,” Gemstar said.

The company agreed in June to pay $10 million to settle Securities and Exchange Commission allegations that it overstated revenue by almost $250 million from 1999 to 2002.

In March, Gemstar agreed to settle a consolidated shareholder suit for $67.5 million in cash and stock. That settlement did not resolve the remaining shareholder derivative suits or the non-consolidated shareholder securities fraud cases. A court must still approve the settlement.

All of the shareholder and SEC claims concerned alleged financial misstatements the company made under former Chief Executive Henry Yuen and former Chief Financial Officer Elsie Leung.

News Corp. owns a controlling stake in Gemstar, with about 41% of the shares. Gemstar also sells software that cable television companies use to provide on-screen guides.

Gemstar shares fell 1 cent to $5.91 on Nasdaq before the announcement.