Regulators say Dolan never notified the government when his holdings crossed the reporting threshold and that he also didn't adhere to the mandatory waiting period. According to a press release, Dolan violated the act beginning Sept. 11, 2017, when he acquired the additional MSG voting securities. Despite later submitting a corrective filing, Dolan was found to have remained in violation of the Hart-Scott-Rodino Act from Sept. 11 until Dec. 26, 2017, when the waiting period on his corrective filings had expired. Officials from the FTC said the 2017 incident was the second time Dolan had violated reporting rules, saying he made a similar mistake in 2010 after acquiring voting securities in Cablevision.
A spokesperson for Dolan said the mistake was a result of an error made by Dolan's lawyers: "Debevoise & Plimpton is the law firm responsible for making timely (Hart-Scott-Rodino Act) filings relating to Jim Dolan’s MSG stock. Debevoise inadvertently missed a required (Hart-Scott-Rodino Act) 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.”
Kenneth A. Libby, special attorney for the DOJ's Antitrust Division wrote in a competitive impact statement that Dolan did not face the maximum penalty "because the violation was inadvertent, the Defendant promptly self-reported the violation after discovery, and the Defendant is willing to resolve the matter by consent decree and avoid prolonged investigation and litigation."
Dolan's proposed settlements will be published in the Federal Register and private citizens may submit written comments concerning the proposed settlements. Click here to learn more about submitting a written comment.