Gemstar Execs’ $38M Severance Pay Held
WASHINGTON (AP) _ A federal judge has ordered Gemstar-TV Guide International Inc. to continue to withhold the $37.6 million in severance payments to former executives Henry C. Yuen and Elsie Ma Leung.
According to a document filed Monday with the Securities and Exchange Commission, the U.S. District Court for the Central District of California ordered Gemstar on Friday to retain the funds for 45 days.
A judge rebuffed an attempt by Yuen and Leung to gain access to the severance payments, which are being held in escrow pending the outcome of an investigation into the company’s accounting practices.
The technology and media company fired Leung, the former chief financial officer, and Yuen, founder and former chief financial officer, a day after the SEC recommended that Yuen be jailed for failing to testify in the investigation.
Yuen and Leung both stepped down from their management positions in November but remained on Gemstar’s payroll.
Gemstar, based in Pasadena, Calif., is a technology and media company that owns TV Guide and provides electronic programming guides.
Shares of Gemstar-TV Guide rose 27 cents, or 6.7 percent, to close Monday at $4.30 on the Nasdaq Stock Market.