Another lawsuit falls into Robert Sillerman’s lap, adds to list of SFX woes
For those who follow the electronic music industry, news of SFX seems to come in far too frequently as of late. From disasters in trying to re-privatize or sell the company to lawsuits and the TomorrowWorld tragedy, the company has been battered into oblivion by industry folk and fans alike. On the heels of a $100 million lawsuit against owner Robert Sillerman for cheating his former founding partner Paolo Moreno, another law firm has opted to go after SFX following Sillerman’s earlier announcements of attempts to buy it back.
Contention between Sillerman and outside parties began earlier in the year when the music mogul first made an offer to buy back his company, which went public in 2013. Stocks for SFX had tanked by August when a final decision was supposed to be made – when the CEO finally admitted to not being able to re-privatize the company. It was only then that Sillerman prompted offers from anyone who wished to place a bid to buy all or parts of the company. He also put in a new, lower offer himself.
According to several bidders, Sillerman made a number of perplexing statements – and thus have led to a new class action lawsuit against both he and SFX through Lundin Law PC. The law firm, which cites “concerning possible violations of federal securities laws between 25 Feb 2015 and 17 Aug 2015,” marks the third establishment to seek legal action against the dance music conglomerate. Further, Sillerman “made misleading statements and/or failed to disclose a proposed acquisition of the company by SFX’s Chief Executive Officer and largest shareholder. Specifically, the investigation will focus on the CEOs repeated affirmations of his commitment to acquire SFX, and whether he failed to disclose that he did not have any financing in place at the time he made his proposal.”
No clients have been confirmed as of late, but should there be a substantial amount of investors that step up to join the lawsuit, this could spell even more significant trouble for the live events outfit.
via: CMU
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SFX prolongs bid deadline as Sillerman desperately searches for a buyer
Categories: News