Recently plagued by
financial troubles, things aren’t quite looking up for SFX Entertainment, the entertainment powerhouse that is responsible for events such as TomorrowWorld, Mysteryland, and Sensation. Robert Sillerman, the company’s founder, has now been hit with a class action law suit alleging that his recent failed attempt to take SFX private was actually a fraudulent action intended to avert attention from the company’s recent financial failings. More specifically, the suit, which was filed by Abbey Spanier, LLP, asserts that Sillerman’s assurance that he would buy the company’s remaining shares, while also hiding the fact that he didn’t have the financial resources to do so, was a thinly veiled attempt to inflate the company’s market price. Furthermore, Sillerman supposedly misled investors with false projections of potential company performance, but given the company’s current financial situation, there is virtually no way for those projections to be met. The suit is seeking monetary damages to be paid to the investors who bough shares in SFX between February 25 and August 17.
