The Securities and Exchange Commission said Tuesday that it settled a case that alleged that the Sugar Land refiner company CVR Energy made inadequate disclosures in regulatory filings about fee arrangements with two investment banks that the company hired to ward off a hostile takeover bid.
SCVR Energy agreed to settle the case without admitting or denying the SEC’s findings. No penalty was accessed which the agency said reflects CVR Energy’s cooperation with the investigation.
A CVR spokeswoman declined comment
The SEC said CVR shareholders were not aware of potential conflicts of interest that stemmed from the fee arrangements with the investment banks. Investors did not know the investment banks could still earn fees if the hostile bidder obtained control of CVR Energy. Neither the hostile bidder nor the investment banks were identified in the SEC’s announcement.