As if things couldn\’t get worse for SFX, a third law firm has announced it plans to take legal action against SFX in relation to founder Robert FX Sillerman’s attempts to take the company back into private ownership. Much earlier this year, Sillerman announced he planned to buy back all the shares he doesn’t currently own back in 2013. But then in August he admitted he couldn’t raise the money to finance the deal at the price he had made, mainly because SFX’s share price had tanked (as a result of both its financial performance and Sillerman’s plan.) They then announced they were accepting all and any new bids for the company\’s shares.
Some have accused Sillerman of making misleading statements after he originally announced his intent to retake control of SFX, which may have violated federal law in the US and negatively impacted shareholders. Because of this investors have decided to come forward and are now joined by Lundin Law PC, who just announced it had filed a class action against SFX “concerning possible violations of federal securities laws between 25 Feb 2015 and 17 Aug 2015. Investors who purchased or otherwise acquired shares should contact the firm in advance of the 10 Nov 2015, lead plaintiff motion deadline”.
The complaint states that SFX “made misleading statements and/or failed to disclose a proposed acquisition of the company by SFX’s Chief Executive Officer and largest shareholder.\”
The company’s independent directors as to whether they are accepting Sillerman’s new buy-back offer.
Shareholders have 5 days (Nov. 10) to decide to join the lawsuit before the court proceeds.
