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Case Status:    SETTLED
On or around 09/15/2004 (Date of order of final judgment)

Filing Date: April 03, 2002

According to a press release dated September 13, 2005, KPMG settled a class-action lawsuit brought by shareholders of Gemstar-TV Guide International Inc. for $25 million. A federal judge in Los Angeles approved the KPMG settlement, said a lawyer for the plaintiffs with Bernstein Litowitz Berger & Grossman in San Diego. The $25-million settlement includes $10 million KPMG agreed to pay last year to settle with the Securities and Exchange Commission.

In a Press Release dated February 12, 2004, Gemstar-TV Guide International Inc. said it has agreed to settle a group of pending class-action suits by
shareholders who sued in the wake of an accounting scandal that led to civil
charges against a series of former top executives. Gemstar said it would pay $42.5 million in cash to class members and issue 4.1 million shares of stock, worth $25 million at the time the agreement was reached. The number of shares to be issued will increase if the stock price falls below $6.09 at the time of the distribution.

Further, according to the press release, Gemstar also said it would assign to the class some of its claims against its former auditor, KPMG. Class members and the company will retain their claims against former Gemstar Chief Executive and Gemstar Chief Financial Officer. The CEO and CFO were forced out in late 2002, and the U.S. Securities and Exchange Commission sued them last summer as part of an investigation into the way the company accounted for revenue. The SEC sued three other former top executives earlier this year. Authorities
have also been pursuing criminal charges against four unnamed former Gemstar
executives. The settlement of the class-action suits, which are pending in federal court in California, does not cover other shareholder derivative suits and certain other
securities fraud cases.

The complaint charges Gemstar and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants caused Gemstar's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. On April 1, 2002, the Company filed its 10-K, which stated in part: "During 1997 through 1999, Scientific-Atlanta was under a license agreement with the Company for the incorporation of interactive program guides into Scientific-Atlanta set-top boxes. The license expired on July 23, 1999, however, Scientific-Atlanta continued to ship set-top boxes incorporating IPGs which are the same or similar to the products shipped during the term of the agreement. The Company instituted legal proceedings in federal district court to recover damages which are probable, based upon the factors described above, to include revenues commensurate with the licensing fees under the expired agreement. The Company has accrued an aggregate of $107.6 million ($58.9 million,$36.5 million and $12.2 million for the year ended December 31, 2001, the nine months ended December 31, 2000 and for the period from July 23, 1999 through March 31, 2000, respectively) in license fees from Scientific-Atlanta."

The 10-K also provides in relevant part: "In April 2001, the Company entered into a nonmonetary transaction with an unrelated company in which $20.8 million of intellectual property was acquired in exchange for $750,000 in cash and advertising having a fair value of $20 million. In addition, the Company received an option to acquire the company in the event that certain performance criteria were met in each of the following two years. The Company determined the fair value of the advertising consideration, all of which was recognized during 2001 as the advertising was aired, based on cash transactions for similar advertising sold to other parties." The stock dropped below $9 per share on this news.


Sector: Consumer Cyclical
Industry: Audio & Video Equipment
Headquarters: United States


Ticker Symbol: GMST
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data

"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: C.D. California
DOCKET #: 02-CV-02775
JUDGE: Hon. Nora M. Manella
DATE FILED: 04/03/2002
CLASS PERIOD END: 04/01/2002
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 ·
  2. Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA)
    225 Broadway, Suite 1900, Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA), CA 92010
    619.702.7350 619.702.7351 ·
  3. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 ·
  4. Hoffman & Edelson
    45 West Court Street, Hoffman & Edelson, PA 18901-4223
    215.230.8043 ·
  5. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 ·
  6. Law Offices of Marc S. Henzel (Lawrence)
    335 Central Avenue, Law Offices of Marc S. Henzel (Lawrence), NY 11559
    516.374.0707 516.295.3473 ·
  7. Mark McNair
    1919 Pennsylvania Avenue, NW, Suite 800, Mark McNair , DC 20006
    703.273.3070 ·
  8. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 ·
  9. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 ·
  10. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 ·
  11. Robbins Umeda & Fink, LLP (San Diego)
    1010 Second Avenue, Suite 2360, Robbins Umeda & Fink, LLP (San Diego), CA 92101
    800-350-6003 ·
  12. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 ·
  13. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 ·
  14. Stull, Stull & Brody (Los Angeles)
    10940 Wilshire Boulevard - Suite 2300, Stull, Stull & Brody (Los Angeles), CA 90024
    310.209.2468 ·
  15. The Emerson Firm
    2228 Cottondale Avenue, Suite 100, The Emerson Firm, AR 72202
    800.663.9817 501.907.2556 ·
  16. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 ·
  17. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 ·
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 02-CV-02775
JUDGE: Hon. Nora M. Manella
DATE FILED: 10/10/2003
CLASS PERIOD END: 04/01/2002
  1. Bernstein Litowitz Berger & Grossmann LLP (former San Diego)
    12544 High Bluff Drive, Suite 150, Bernstein Litowitz Berger & Grossmann LLP (former San Diego), CA 92130
    858.793.0070 858.793.0323 ·
No Document Title Filing Date