Things don't seem to be picking up for Robert F. X. Sillerman and SFX Entertainment as it has been announced that joint shareholders have filled a class action lawsuit against Sillerman and company executives. This comes after earlier this year when SFX leaders purchased over $1.5 million in company stock and SFX stock plummeted after an asset sell off. Now, the company finds itself in deep water yet again.
The class action lawsuit has been filled by shareholders who purchased stock between February 25, 2015 and August 17, 2015. They claim that during the class period, SFX Entertainment executives made materially false and misleading statements in regards to the acquisition of SFX by Robert F.X. Sillerman. The misleading statements include that, at the time of the SFX acquisition by Sillerman, Sillerman affirmed he would acquire SFX but did not have the finances in place to purchase the company. They claim he knew or recklessly disregarded that he could not obtain the financing to finalize the transaction.
The shareholders who filled the lawsuit further state that with the growing debt of SFX it was not feasible that Sillerman was ever going to purchase the company and, with the help from other defendants mentioned in the lawsuit, Sillerman actively sought third party investors to cover up the financial issues.
We'll be keeping you up to date as more information regarding this lawsuit unfolds. For more information click here.
via: (PR Newswire)