RADNOR, Pa., Oct. 27, 2015 (GLOBE NEWSWIRE) — The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against SFX Entertainment, Inc. (Nasdaq:SFXE) (“SFX” or the “Company”) on behalf of purchasers of the Company’s securities between February 25, 2015 and August 17, 2015, inclusive (the “Class Period”).
SFX shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or at [email protected]. For additional information about this lawsuit, or to request information about this action online, please visit http://www.ktmc.com/new-cases/sfx-entertainment-inc.
SFX is engaged in the production and promotion of live music festivals and events, production of music tours, selling event tickets through a ticketing platform, merchandising and related services.
The complaint alleges that, throughout the Class Period, SFX and certain of its executive officers made a series of materially false and misleading statements in connection with a proposed acquisition of SFX by Robert F.X. Sillerman (“Sillerman”), SFX’s Chief Executive Officer and largest shareholder. For example, the complaint alleges that although Sillerman repeatedly affirmed his commitment to acquire SFX, he and other SFX executive officers knew or recklessly disregarded, and failed to disclose to shareholders, that Sillerman did not have the requisite financing in place at the time he made his proposal to acquire SFX, and knew or recklessly disregarded that Sillerman would not be able to obtain the required financing to consummate the transaction.
The Complaint further alleges that, given the Company’s growing debt and decreasing margins, it was not feasible that Sillerman was ever going to buy the Company. Rather, Sillerman initiated and maintained a sham process designed to lure third party buyout offers for SFX, all in an attempt to shed his personal SFX investment before the truth about the deterioration of the Company’s finances could no longer be concealed.
The effect of the false and misleading statements by SFX and its executive officers during the Class Period was to fraudulently inflate and maintain the market price of the Company’s securities at levels that would not otherwise have prevailed based on the true financial performance and future prospects of the Company. As the truth about Sillerman’s intentions reached the market, shares of SFX’s common stock substantially declined in value.
SFX shareholders who purchased their securities during the Class Period may, no later than November 10, 2015, petition the Court for appointment as a lead plaintiff of the class.
A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
CONTACT: CONTACT: Kessler Topaz Meltzer & Check, LLP Darren J. Check, Esq. D. Seamus Kaskela, Esq. Adrienne O. Bell, Esq. 280 King of Prussia Road Radnor, PA 19087 (888) 299 - 7706 (610) 667 - 7706 [email protected]