As SFX Entertainment's financial crisis continues, founder Robert Sillerman is now the subject of a class action lawsuit stating that his attempt to take the company private (which failed earlier this summer) was a fraudulent attempt at covering up the company's crumbling financial state.

The lawsuit, filed by Abbey Spanier, LLP, claims that Sillerman's continued claims that he would purchase all of the company's remaining shares while hiding the fact that he lacked the financial backing to do so, was an attempt to inflate SFX's market price.

It is asserted in the lawsuit's claims that Sillerman knowingly misled investors into thinking the company could perform at "levels that would not otherwise have prevailed based on the true financial performance and future prospects of the Company."

The class action suit seeks monetary damages on behalf of investors who bought shares in SFX during the class period, which is defined as running from February 25 of this year to August 17.

[H/T: PRNewsWire]

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