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.