Thursday, April 17, 2014
Inquirer Daily News

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.

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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