Robert Sillerman just can’t catch a break in 2015. Just when news broke that Sebastian Solano was named the new CEO of ID&T: North America and Made Event, more news of legal trouble for the company followed shortly after.
Over the past few months, Sillerman has been desperately trying to keep SFX Entertainment together and in the black, but hasn’t gotten the results he wanted. Shareholders weren’t too pleased with his attempt to re-privatize the company, and recently the deadline to sell SFX passed too (but they were granted $80 million to keep the company afloat temporarily). Compounded with a disastrous TomorrowWorld that resulted in partial refunds to ticketbuyers, and a $100 million lawsuit from former SFX partner Paolo Moreno, it didn’t seem like there could be anything else to kick Sillerman and his company while they were down.
The law firm Lundin Law PC, however, is now joining two other firms in filing a class action lawsuit in response to the failed attempt to re-privatize the company. They believe that SFX may have violated federal securities laws between February and August 2015 and Sillerman “made misleading statements and/or failed to disclose a proposed acquisition of the company by SFX’s Chief Executive Officer and largest shareholder.” While he finally admitted in August 2015 that he wasn’t able to buy back the company due to its falling shares, he could still be in some serious hot water if the firms can prove that he never had any intentions of doing so.
So what’s the next important deadline? November 10. Any other shareholders that want to join the class action lawsuit have 5 days to decide before the court proceeds.
Source: CMU