$100 million lawsuit resurfaces against SFX and heads to court this OctoberSf Entertainment Logo

$100 million lawsuit resurfaces against SFX and heads to court this October

In late 2014, Robert Sillerman’s company SFX was valued at $1 billion on NASDAQ, generating over $354 million in revenue thanks to its wide reach within the EDM industry. A large part of the company’s success stemmed from the company’s move in 2012 to consolidate the then-fractured scene, an idea incepted by Sillerman’s partner at the time, Paolo Moreno. The partnership seemed solid; Moreno, a promoter, did the groundwork in identifying seven out of eight of SFX’s prime assets when it went public. Behind the scenes, Sillerman did the heavy financial lifting.

Moreno has made a public announcement that he was allegedly scammed by SFX in his recent lawsuit against the company, stating that he was initially told by Sillerman that he would “make more than [he could] ever imagine.” According to Moreno, he never earned a penny from Sillerman and was shut out of further business proceedings despite having done most of the work. After multiple attempts from Sillerman’s camp to dismiss the suit, Judge Ronald S.W. Lew of Los Angeles found enough proof through emails between Moreno and Sillerman to bring the trial to fruition.

Moreno and two other plaintiffs Gabriel Moreno and Lawrence Varva are suing for $100 million in damages, and the trial is set to begin in the Los Angeles court on October 6th. The case adds onto a growing list of issues for the company, including an apparent need for cash after going public was not as successful as predicted.

Via: Forbes

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