Gemstar-TV Guide International Inc. has settled a legal tangle with its disgraced, former chief financial officer for $8.4 million, according to a filing Tuesday with the Securities & Exchange Commission.
Elsie Ma Leung, who had sought the money as severance pay after leaving the Hollywood-based company in 2002, "has relinquished all claims" to the money, according to the filing.
Leung had long laid claim to the money despite an investigation by the SEC that concluded Leung and former chief executive officer Henry Yuen had inflated the company's revenues. In February, Leung paid $1.3 million to settle with the SEC on charges she and Yuen defrauded Gemstar investors.
The funds were sitting in an escrow account pursuant to a court order.
By relinquishing the escrow funds and any legal claims against Gemstar, Leung secured a release of any fraud claims by the company against her. The money will be reclassified on Gemstar financial statements from "restricted cash" to "cash and cash equivalents."
The agreement with Leung doesn't affect a similar escrow account for Yuen, which currently holds $30.5 million.
A U.S. court ordered Yuen in May to pay $22 million for his role in the scheme, which inflated the company's revenue by nearly $250 million over three years. Yuen also has agreed to plead guilty to separate criminal charges of obstructing a federal investigation.
Gemstar, which published TV Guide and interactive television programming guides, closed Tuesday at $3.33, up 4 cents on the day in trading on Nasdaq.
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