The Supreme Court on Tuesday let stand a ruling against two former executives of Gemstar-TV Guide International, bolstering the ability of the Securities and Exchange Commission to freeze payments to corporate executives under federal accounting fraud law.
The S.E.C. gained the ability to block payments to executives in the Sarbanes-Oxley Act of 2002, passed by Congress in response to a succession of big-name corporate accounting frauds.
The commission used the provision in its investigation of a $250 million accounting fraud scandal at Gemstar, which owns TV Guide, by freezing $37 million in termination payments to the former chief executive, Henry C. Yuen, and the former chief financial officer, Elsie M. Leung, while its investigation was pending.
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