NEW YORK, Sept. 11, 2015 /PRNewswire/ -- Abbey Spanier, LLP specializing in class action suits announces the filing of a class action lawsuit in the United States District Court for the Southern District of New York (15-cv-07192) on behalf of all investors who purchased or otherwise acquired the common stock of SFX Entertainment, Inc. ("SFX" or the "Company") (NASDAQ: SFXE), between February 25, 2015 and August 17, 2015, inclusive (the "Class Period") against SFX Entertainment, Inc., Robert F.X. Sillerman ("Sillerman"), D. Geoffrey Armstrong, John Miller, Michael John Meyer (the "Defendants") for violations of section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. The lawsuit seeks class action status and monetary damages
The complaint alleges, among other things, that Defendants made materially false and misleading statements in connection with the proposed acquisition of SFX by Robert F.X. Sillerman ("Sillerman"), SFX's Chief Executive Officer ("CEO") and largest shareholder, for all of the outstanding common stock he did not already own. The Complaint alleges that throughout the Class Period, Defendant Sillerman repeatedly affirmed his commitment to acquire SFX. However, Defendant Sillerman knew or recklessly disregarded and failed to disclose that he did not have any financing in place at the time he made his proposal and knew or recklessly disregarded that he could not obtain the 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 and, with the aid of the other defendants, Sillerman initiated and maintained a sham process designed to lure third party offers, in an attempt to shed his failing investment before the truth about the deterioration of the Company could no longer be concealed. The effect of the false and misleading statements by Defendants during the Class Period was to fraudulently inflate and maintain the market price of SFX shares at levels that would not otherwise have prevailed based on the true financial performance and future prospects of the Company.
Investors who bought SFX during the Class Period may move the court to appoint them as lead plaintiff within 60 days from the date of this notice. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
The attorneys at Abbey Spanier, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of over one billion dollars for investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
Nancy Kaboolian, Esq.
Abbey Spanier, LLP
212 East 39th Street
New York, New York 10016
(800) 889-3701 (Toll Free)
Or e-mail [email protected]
SOURCE Abbey Spanier, LLP