James Dolan, the CEO of Madison Square Garden Co. and executive chairman of MSG Networks, will pay more than $600,000 in civil penalties to settle charges by the Federal Trade Commission he violated securities rules.
The FTC said he failed to report in a timely matter a notification of his acquisition of additional voting shares in Madison Square Garden Co. at the point when his holdings crossed the threshold when such transactions have to be reported. Dolan did make a filing later, the FTC said.
But, the FTC said, Dolan was in “continuous violation” of the rules for about three months in late 2017. The violations are related to Hart Scott Rudino.
MSG sent a statement to CNBC by email: “Any shareholder whose stockholdings exceed certain thresholds is required to make an HSR filing. Debevoise & Plimpton is the law firm responsible for making timely HSR filings relating to Jim Dolan’s MSG stock. Debevoise inadvertently missed a required HSR filing deadline, for a second time, which resulted in a fine by the FTC. Debevoise agreed to pay the fine as a result of their mistake.”
MSG owns the New York Knicks professional basketball team and the New York Rangers professional hockey team.