Robert Sillerman Is Being Sued... Again
In September, we reported that SFX Entertainment had become the target of a class action law suit regarding CEO Robert Sillerman's failiing efforts to take the EDM mega-company private again. Now, another law firm has stepped up to go after SFX. Lundin Law PC has filed suit against Robert Sillerman, on the claim that he violated Federal securities law when he was unable to follow through on his promise to take the company private.
In the lawsuit, Lundin Law PC claims that 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."
The lawsuit alleges that Sillerman decieved investors by repeatedly affirming his commitment to take SFX private, while failing to disclose that he lacked the funding to do so. When his earlier attempts ultimately failed after it came to light that no such funding was in place, the lawsuit claims that it had a negative affect on investors, especially those who hopped on board earlier this year.
Like the other two cases previously brought against Sillerman, Lundin Law PC is seeking out investors to represent in their class action case, and none of the suits brought against Sillerman have officially announced any clients at this point.