SFX Entertainment founder sued for alleged stock fraud, representatives claim accusations are ‘baseless’
SFX Entertainment founder Robert Sillerman is currently being sued for alleged stock fraud by three music managers who claim to have given the entertainment mogul the idea for the EDM-focused conglomerate. Paolo Moreno, Gabriel Moreno and Lawrence Vavra are currently in litigation claiming that they presented the idea of consolidating music festivals and promotion companies into SFX Entertainment to Robert Sillerman and in turn were promised a significant amount of equity and ownership in the fledgling project. According to the plaintiffs, $2.5 million worth of founding shares were promised but never received.
The three men worked closely with the company over the course of the past year, alleging that a more formal partnership was in the works but that their verbal agreement never came to fruition through any official legal documents.
Spokesperson for SFX, Ed Tagliaferri and Vice Chairman Sheldon Finkel claim that the plaintiffs accusations are “baseless.”
Via: Wall Street Journal