James L. Dolan, the landlord of the Knicks and the manager government of the Madison Sq. Lawn Corporate, violated federal regulation when he failed to inform govt companies of his acquisition of extra balloting securities within the corporate, the Federal Business Fee mentioned Thursday.
Mr. Dolan, who additionally serves as government chairman of MSG Networks, has agreed to pay $609,810 in civil consequences to settle the fees, the F.T.C. mentioned.
Corporations and folks should tell the F.T.C. and the Justice Division if a significant monetary transfer, akin to a merger or acquisition, will motive the worth in their balloting securities in an organization to surpass a specific amount. The guideline, known as the Hart-Scott-Rodino Act, lets in the federal government to guage whether or not the transactions will negatively impact trade in america.
The events are required to ship detailed filings to the companies upfront and can’t shut the deal till the top of a ready duration.
Kimberly Kerns, a spokeswoman for the corporate, described the case as an administrative error, announcing the corporate’s regulation company, Debevoise & Plimpton, had neglected a cut-off date for the submitting.
“Debevoise agreed to pay the superb on account of their mistake,” she mentioned.
Mr. Dolan in the long run filed studies for the purchase of the stocks however was once in violation of the principles for approximately 3 months in 2017, in step with the grievance. He has violated notification necessities earlier than mergers up to now, the F.T.C. mentioned.
Along with the Knicks, Mr. Dolan owns the New York Rangers and oversees the operations of each groups. He was once leader government of Cablevision till it was once bought in 2016.