Securities and Exchange Commission
Litigation Release No. 18135 / May 13, 2003
Securities and Exchange Commission v. Henry C. Yuen and Elsie Ma Leung, Case No. CV 03-3124 MRP(PLAX) (C.D. Cal.)
Court Orders Escrow of Extraordinary Payments
by Gemstar-TV Guide International Under
The Sarbanes-Oxley Act
Today, the Honorable Wm. Matthew Byrne, Jr., U.S. District Judge for the Central District of California, granted the Securities and Exchange Commission's application for an order requiring Gemstar-TV Guide International, Inc., to escrow for 45 days any extraordinary payments to any of its directors, officers, partners, controlling persons, agents, or employees pursuant to Section 1103 of the Sarbanes-Oxley Act of 2002. Section 1103 of the Sarbanes-Oxley Act provides that the SEC may, during an investigation into securities laws violations by a public company or an officer, director or other affiliate of a public company, seek a temporary order from a federal district court requiring the company to escrow "extraordinary payments" likely to be made to such person for 45 days or, if such person is charged with a violation of the securities laws, until the conclusion of the SEC's lawsuit. The Court's order places in escrow, subject to court supervision, approximately $37.64 million in cash payments that Gemstar previously agreed to pay to Henry C. Yuen, its former chief executive officer, and Elsie Leung, its former chief financial officer.