Accounting firm KPMG LLP settled a class-action lawsuit brought by shareholders ofGemstar-TV Guide International Inc.
for $25 million, Bloomberg News reported. The $25 million settlement includes $10 million KPMG agreed to pay last year to settle with the Securities and Exchange Commission, said a lawyer for the plaintiffs with Bernstein Litowitz Berger & Grossman LLP. KPMG was the auditor for Gemstar, the L.A.-based publisher of TV Guide, from September 1999 through March 2002, when the company overstated revenue by nearly $250 million. Last year, Gemstar settled the shareholder lawsuit for $67.5 million in cash and stock.
In other Gemstar news, the company announced that John Loughlin, president of the TV Guide publishing group, resigned to become executive vice president and general manager of Hearst Magazines. Loughlin will remain in his role at Gemstar-TV Guide through the debut of the new TV Guide magazine on Oct. 17. Anthea Disney, executive chairman of Gemstar, will oversee the TV Guide publishing group until a successor is named.
& #8226; OSI Systems Inc. , a Hawthorne-based security and inspection systems manufacturer, reported a net loss of $4 million (25 cents per diluted share) for the fourth quarter ended June 30, compared with income of $2.2 million (14 cents) for the like period a year ago. Revenues rose to $100.7 million from $95.8 million in the year-ago period.
The company said its fourth-quarter results were favorably impacted by a $3.5 million tax benefit and by a change in the Healthcare Groups unit's estimated warranty provision of about $2.1 million resulting from lower-than-expected warranty claims.
The company anticipates first-quarter revenues of $101 million to $103 million. Due to the weakness in its cargo and vehicle inspection product line revenues, continued litigation and Sarbanes-Oxley related expenses, OSI Systems expects to incur a net loss for the first quarter. The company said it expects to return to profitability in the second quarter.
& #8226; Activision Inc. named Thomas Tippl as chief financial officer to replace William Chardavoyne, who plans to leave at the end of fiscal 2006 in March to pursue other interests. Tippl spent 14 years at Procter & Gamble Co., where he worked in the company's investor relations, financial and strategic planning and financial management units. At Activision, he will report to President and Chief Executive Mike Griffith.
& #8226; Wedbush Capital Partners acquired ExtruMed LLC, a Placentia-based manufacturer of catheter tubing for medical and non-medical applications. Details of the transaction were not disclosed. The Los Angeles-based private equity firm partnered with Inverness Capital Partners in the transaction. Fifth Street Capital provided debt financing. The acquisition enables Wedbush to invest in and develop ExtruMed's next-generation medical devices.
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