SEC Probe of Gemstar Formalized
The company says it will cooperate fully.
The
Securities and Exchange Commission
formalized its investigation into whether
Gemstar-TV Guide
(GMSTE)
broke securities laws.
The company has been in informal discussions with the agency all summer after admitting early this year it had recorded licensing revenue that it hadn't received and restating 2001 financial statements to change its treatment of some advertising proceeds.
The formal status of the SEC probe gives the agency the power to issue subpoenas in the case, Gemstar said. "The company intends to continue to fully cooperate with the SEC as it moves forward in its process," Gemstar said.
Gemstar is 42.3% owned by Rupert Murdoch's
News Corp.
(NWS) - Get Report
.
