Wednesday, June 3, 2015

SEC fines Perelman's Revlon for 'misleading disclosures'

$850,000 fine for failing to report lowball share offer was below adviser's target

SEC fines Perelman's Revlon for 'misleading disclosures'

Revlon, the New York cosmetics maker controlled by Philadelphia native Ronald Perelman, has agreed to pay the Securities and Exchange Commission $850,000 to settle charges that Revlon "misled shareholders" and its own independent directors when it suppressed information that its own financial expert found the company was underpaying shareholders when the company bought back shares to pay more than $100 million Revlon owed Perelman's holding company, MacAndrews and Forbes, in 2009.

Revlon eventually raised its offer for the shares; some shareholders sued, demanding more. The SEC accused Revlon of "ring fencing" information about the real value of the shares instead of sharing it with independent directors and investors. Read the SEC's order against Revlon here. Revelon's lawyer, Colleen Mahoney at Skadden Arps, wasn't immediately available for comment.

About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at,, 215.854.5194 or 302.652.2004.

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Joseph N. DiStefano