Gemstar-TV Guide Announces Favorable Decision in Yuen Arbitration
By Caroline Palmer -- Broadcasting & Cable, 1/22/2007 1:11:00 PM
After years of legal battling and litigation, Henry Yuen will walk away with nothing--and owe upwards of $60 million dollars--to his former employer Gemstar-TV Guide.
Yuen was terminated in April 2003 after he breached representations and warranties made to the company in 2002 during a corporate restructuring. The arbitrators found that the company was justified in the termination of Mr. Yuen, and they also found that the the former CEO is not entitled to any of the $30.9 million dollars set-aside for him by the company as restricted cash due to his role a 2002 restructuring, and instead they can use that money to start to pay off the $93.6 (plus legal fees) the arbitrators said Yuen owes the company. To help pay off more of that $93.6 million, the arbitrators also found in favor of Gemstar-TVGuide and ruled that the Patent Agreement between the company and Mr. Yuen (Yuen was getting a portion of licensing fees because he owned several patents) was in effect until 2010. The arbitrators ruled that the company is entitled to the money owed to Yuen under that patent agreement. In a statement, Stephen H, Kay, Gemstar-TV Guide's executive vice president and general counsel said, "We are very pleased with the arbitrators ruling in this matter.....it is gratifying that Mr. Yuen has been held accountable for a sizable portion of harm that he caused the Company and it's shareholders during his tenure as chairman and chief executive officer."
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