Former Discovery Holdings Head to Pay $1.4M in FTC Settlement

Authored by Mark Hefflinger on June 24, 2009 - 7:59am.

Silver Spring, Md. - John Malone, the former chairman and CEO of Discovery Communications parent Discovery Holding, will pay $1.4 million as part of a settlement with the Federal Trade Commission (FTC) over allegations that he purchased company shares last year before the expiration of a waiting period required by law.

The FTC said that Malone failed to file the required notice in 2005 after buying shares of the company, then in 2008 purchased additional shares before the end of the waiting period required by the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act).

"The HSR Act and its filing requirements are well-known to companies and individuals making acquisitions," said Marian Bruno, deputy director of the FTC's Bureau of Competition.

"The significant civil penalties imposed here should reinforce the need to fully comply with the Act, including observing the waiting period."

Malone, the chairman of Liberty Media, served as the chairman and CEO, Discovery Holding from 2005 to 2008, when Discovery Communications became a public company.

Discovery Holding had owned a two-thirds stake in Discovery Communications.

Related Links:
http://www.ftc.gov/opa/2009/06/malone.shtm

http://corporate.discovery.com/leadership/john-malone