(Corrects 4th paragraph to clarify that only Thursday's
settlement, not an earlier Revlon settlement, requires court
* MacAndrews & Forbes pays $720,000 civil fine in DOJ accord
* U.S.: Reporting rules were violated over stock purchase
* Perelman's company says mistake was inadvertent, technical
By Jonathan Stempel
June 20 A company owned by Ronald Perelman has
agreed to pay $720,000 to settle U.S. Department of Justice
charges over a stock purchase, the second time this month that
the billionaire financier agreed to penalties to resolve civil
charges by the federal government.
MacAndrews & Forbes Holdings agreed to make the payment to
end an antitrust case over its failure to report its June 2012
purchase of more shares in Scientific Games Corp, which
provides lottery and gaming services, despite passing an
ownership threshold requiring such reporting, the Justice
The accord follows an unrelated June 13 settlement in which
Revlon Inc agreed to pay $850,000 to settle U.S.
Securities and Exchange Commission charges that it deceived
shareholders and independent directors about a failed 2009
transaction with Perelman to take the cosmetics company private.
MacAndrews & Forbes owns more than three-quarters of Revlon.
The latest settlement requires court approval.
In Thursday's case, the government said the purchase of
Scientific Games shares required Perelman's firm under the
federal Hart-Scott-Rodino law to report its stake to the Justice
Department and the Federal Trade Commission.
These agencies have powers to block mergers, and can demand
notice when a shareholder is amassing a large stake in a
company. MacAndrews & Forbes later made a corrective filing.
Christine Taylor, a MacAndrews & Forbes spokeswoman, called
the failure to file a "technical and inadvertent mistake" that
the company reported on its own and which involved no financial
benefit. She said new safeguards are in place to avoid a repeat.
According to regulatory filings, Perelman owns roughly 38
percent of Scientific Games, whose market value was about $966
million as of Wednesday's close.
Forbes magazine in March estimated that Perelman, 70, was
worth $12.2 billion, making him the world's 79th-richest person.
The case is U.S. v. MacAndrews & Forbes Holdings Inc, U.S.
District Court, District of Columbia, No. 13-00926.
(Reporting by Jonathan Stempel in New York; Editing by Carol