SFXE Stock Falls Further As Investors File Lawsuit Against Founder Robert Sillerman
SFX Entertainment is clearly in trouble. Running low on cash and with its stock trading under 50 cents per share and falling, SFXE is just days away from the New York Stock Exchange beginning the process of delisting it from the market. Now investors have filed suit against founder Robert Sillerman.
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A group of investors have filed a lawsuit against Robert Sillerman's SFXE in the wake of Sillerman's failed bid to take the company private in a cash buyout.
According to a press statement released by law firm Abbey Spanier, the suit, brought against Mr. Sillerman, D. Geoffrey Armstrong, John Miller, and Michael John Meyer, alleges that the defendants made false or misleading statements in connection with the proposed acquisition.
The suit also alleges that given the company's financial situation, the proposed sale was not feasible and that Sillerman and the other defendants "initiated and maintained a sham process designed to lure third party offers, in an attempt to shed his failing investment before the truth about the deterioration of the Company could no longer be concealed."
Mr. Sillerman, who founded SFXE, announced plans to take the company private in an all cash transaction earlier this year. However, the window for disclosing his financing for the transaction closed in early August with no movement from Mr. Sillerman and the company's stock was battered, with many analysts expecting that the company's key asset would be sold off piecemeal.
As of mid-moring SFXE stock was trading at $.47 per share.
via CelebirtyAccess
The lawsuit seeks class action status and monetary damages. A rep for SFXE did not respond to a request for comment.A group of investors have filed a lawsuit against Robert Sillerman's SFXE in the wake of Sillerman's failed bid to take the company private in a cash buyout.
According to a press statement released by law firm Abbey Spanier, the suit, brought against Mr. Sillerman, D. Geoffrey Armstrong, John Miller, and Michael John Meyer, alleges that the defendants made false or misleading statements in connection with the proposed acquisition.
The suit also alleges that given the company's financial situation, the proposed sale was not feasible and that Sillerman and the other defendants "initiated and maintained a sham process designed to lure third party offers, in an attempt to shed his failing investment before the truth about the deterioration of the Company could no longer be concealed."
Mr. Sillerman, who founded SFXE, announced plans to take the company private in an all cash transaction earlier this year. However, the window for disclosing his financing for the transaction closed in early August with no movement from Mr. Sillerman and the company's stock was battered, with many analysts expecting that the company's key asset would be sold off piecemeal.
The lawsuit seeks class action status and monetary damages. A rep for SFXE did not respond to a request for comment.A group of investors have filed a lawsuit against Robert Sillerman's SFXE in the wake of Sillerman's failed bid to take the company private in a cash buyout.
According to a press statement released by law firm Abbey Spanier, the suit, brought against Mr. Sillerman, D. Geoffrey Armstrong, John Miller, and Michael John Meyer, alleges that the defendants made false or misleading statements in connection with the proposed acquisition.
The suit also alleges that given the company's financial situation, the proposed sale was not feasible and that Sillerman and the other defendants "initiated and maintained a sham process designed to lure third party offers, in an attempt to shed his failing investment before the truth about the deterioration of the Company could no longer be concealed."
Mr. Sillerman, who founded SFXE, announced plans to take the company private in an all cash transaction earlier this year. However, the window for disclosing his financing for the transaction closed in early August with no movement from Mr. Sillerman and the company's stock was battered, with many analysts expecting that the company's key asset would be sold off piecemeal.
The lawsuit seeks class action status and monetary damages. A rep for SFXE did not respond to a request for comment.
