Live events sector
SFX Entertainment has settled one of the two outstanding lawsuits against it. Last August, Paolo Moreno, who claimed he was behind the original idea for SFX, filed a class action lawsuit against the firm’s CEO Robert Sillerman alleging fraud and breach of contract. Moreno, along with two other men, claimed Sillerman had cut him out of the business once it began to take off. Documents obtained by Mixmag, show the class action lawsuit has now been dismissed.
The EDM promoter still faces a separate lawsuit seeking compensation for allegedly misleading investors in Sillerman’s bid to take the company private. The lawsuit refers to the acquisition proposal as a “sham process” designed to make the firm attractive to a third-party purchaser and maintain the share price before it was caught by its liquidity problems.
SFX recently secured $20 million in new financing, later revealed to have come from Canadian private equity firm Catalyst Capital Group. SFX stock slid 12.01% to $0.10 yesterday valuing the company at least than $10 million.