NEW YORK, May 16, 2002 (PRIMEZONE) -- According to Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com), which has filed a class action lawsuit against Gemstar-TV Guide International, Inc. ("Gemstar" or the "Company") (Nasdaq:GMST), on behalf of those persons or entities who purchased the common stock of Gemstar during the period from November 10, 1999 through April 1, 2002, inclusive (the "Class Period), shareholders have until Monday June 3, 2002 to seek appointment by the Court as one of the lead plaintiffs in this action. The lawsuit charges that Gemstar improperly recognized $107.6 million in licensing revenue from cable TV equipment maker Scientific-Atlanta, Inc. ("Scientific-Atlanta") since 1999, although Scientific-Atlanta stopped making payments to Gemstar beginning in 1999.
According to the Complaint, Gemstar improperly booked $20 million in revenue from advertising space it purportedly "sold" on its interactive program guides ("IPGs") to a company called Fantasy Sports, although the transaction was actually a "barter arrangement" in which the Company received intellectual patents, not cash, from Fantasy Sports. Plaintiff charges that as a result of defendant's misrepresentations and omissions about Gemstar's financial results and condition, the price of the Company's shares traded at artificially inflated prices during the Class Period.
On April 1, 2002, when Gemstar filed its 10-K for the year ended December 31, 2001, it belatedly provided some disclosures of its improper revenue recognition practices. Upon this revelation, the price of the Company's shares fell as much as 37%, or $5.35, to $9.01 on volume of 51.4 million. In addition, numerous analysts lowered their ratings on the Company's stock.
If you purchased the common stock of Gemstar during the Class Period, you have until Monday June 3, 2002, to ask the Court to appoint you as one of the lead plaintiffs for the Class. To serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca