SEC Turns Up Heat on Gemstar

Publish date:
Updated on

Gemstar-TV Guide International Inc. said the Securities and Exchange
Commission escalated its investigation into the company's accounting practices
to a formal inquiry, which gives the feds subpoena power.

Gemstar disclosed some questionable accounting practices earlier this year,
including the booking of more than $100 million in revenue from
Scientific-Atlanta Inc. that it had hoped to collect through litigation.

The company also booked $20 million from a barter deal as ad