Roy Speer
Encyclopedia
Roy Speer was the financial backing behind the Home Shopping Network
Home Shopping Network
Home Shopping Network or HSN began in 1977 as a 24-hour/7 day a week home shopping television network televised via cable, satellite, and some terrestrial channels in the Philippines. HSN can also be shopped online at hsn.com...

. He was the first CEO of the company and saw its revenue from $1.9 million to over $1 billion annually. He is also an attorney and real estate developer.

In 1993, Speer was charged in a class-action suit that alleged he improperly accepted
compensation from vendors; that the Company paid Nando DiFilippo, former executive vice-president, general counsel and secretary of the Company, to prevent him from disclosing such vendor bribes; and that the Company had failed to properly disclose certain related party transactions in its filings with the SEC.

Also, in 1993 another suit was brought against Speer alleging a breach of fiduciary duties owed to the Company and its stockholders by failure to exercise due care and diligence in the management and administration of the affairs of the Company. The suit challenged the validity of a license agreement with Richard Speer (Roy Speer's son) pursuant to which the Company was given the exclusive rights to certain software and alleges that the Company wrongfully made payments to Richard Speer pursuant to a computer services agreement which was allegedly terminated. The suit alleged that the Company wrongfully made payments to Richard Speer of $3,502,000, $3,286,000 and $3,084,000 during the Company's 1992, 1991 and 1990 fiscal years, respectively, pursuant to the agreement. Merchandise that is unsuitable for sale via the Company's programs or outlet stores was sold by Richard Speer, who received a commission of 15% on the amount realized upon disposition. Richard Speer received $1,469,000, $1,615,000 and
$1,427,000 and through this arrangement during the Company's 1992, 1991 and 1990
fiscal years, respectively. The suit also alleged that this 15% commission was
commercially unreasonable. The suit alleged that the above-described arrangements
would not have been entered into by the Company with an unrelated third party
and that Roy and Richard Speer owned undisclosed interests in unspecified firms
which sell merchandise to the Company.

Speer settled all claims with the Plaintiffs before they ever went to trial.

Source: HOME SHOPPING NETWORK INC Form:10-K Filing Date:3/29/1994

http://sec.edgar-online.com/1994/03/29/00/0000950144-94-000739/Section4.asp
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