Gemstar Accepts US Fine for Exaggerated Revenue

25 June 2004

Gemstar TV Guide International's reputation takes a knocking but its shareholders will be compensated as the company agrees to pay a $10 million (€8.3m; £5.5m) fine for overstating revenues.

A lawsuit filed by the Securities and Exchange Commission claimed Gemstar's revenue had been embellished by $250m from 1999 to 2002 after the company had added revenue from expired or contested license agreements with cable operators and consumer electronic companies.

The claim also stated that false revenue was generated by classifying exchanges as income and paying companies to purchase advertising from Gemstar.

The SEC later conceded the case could be settled by Gemstar paying the fine, to be distributed to shareholders.

Data sourced from: The Wall Street Journal Online; additional content by WARC staff