The Securities and Exchange Commission on Thursday charged Revlon Inc. with misleading shareholders during a “going private transaction.”

Revlon agreed to settle the SEC’s charges and pay a penalty of $850,000 without admitting or denying the findings, according to the agency.

The SEC stated that in 2009 during a voluntary exchange offer intended to pay down debt to controlling shareholder MacAndrews and Forbes, Revlon engaged in “ring fencing” that deprived its independent board members from knowing critical information.

“Going private transactions create opportunities for shareholder abuse and can have coercive effects on minority shareholders,” stated Antonia Chion, associate director in the SEC’s Division of Enforcement. “By erecting informational barriers, Revlon kept critically important information from its board and, in turn, misled investors.” Revlon did not respond to a request for comment.