Revlon agrees to pay $850,000 penalty after being fined by SEC for allegedly misleading shareholders
Securities and Exchange Commission (SEC) fined the beauty company for allegedly keeping important information from its board
US beauty manufacturer Revlon Inc. has agreed to pay an $850,000 penalty, after the Securities and Exchange Commission (SEC) accused the company of allegedly misleading shareholders during a going-private transaction in 2009.
The SEC accused Revlon of misleading its independent board members by depriving them from knowing that the tansaction’s consideration had been deemed inadequate by a third party. Although Revlon has agreed to pay the fine, it did not admit or deny any wrongdoing.
Antonia Chion, Associate Director in the SEC’s division of enforcement, said: “Going-private transactions create opportunities for shareholder abuse and can have coercive effects on minority shareholders.” She added: “By erecting informational barriers, Revlon kept critically important information from its board and, in turn, misled investors.”