A lawsuit was filed on behalf of investors in SFX Entertainment Inc (NASDAQ:SFXE) shares over alleged securities laws violations and NASDAQ:SFXE investors should contact the Shareholders Foundation.
San Diego, CA -- (ReleaseWire) -- 11/02/2015 -- A shareholder in NASDAQ:SFXE shares filed a lawsuit against SFX Entertainment Inc over alleged violations of Securities Laws in connection with certain allegedly false and misleading statements.
Investors who purchased a significant amount of shares of SFX Entertainment Inc (NASDAQ:SFXE) between February 25, 2015 and August 17, 2015, and / or those who purchased any SFX Entertainment Inc (NASDAQ:SFXE shares prior to February 2015 and continue to hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: November 10, 2015. NASDAQ:SFXE investors should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 - 1554.
The plaintiff alleges on behalf of purchasers of SFX Entertainment Inc (NASDAQ:SFXE) common shares between February 25, 2015 and August 17, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that among other things, that Defendants made materially false and misleading statements in connection with the proposed acquisition of SFX by Robert F.X. Sillerman, SFX Entertainment's Chief Executive Officer ("CEO") and largest shareholder, for all of the outstanding common stock he did not already own.
The plaintiff claims that between February 25, 2015 and August 17, 2015, Sillerman repeatedly affirmed his commitment to acquire SFX Entertainment and that Sillerman allegedly knew or recklessly disregarded and allegedly 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.
On February 25, 2015, SFX Entertainment Inc (NASDAQ:SFXE) confirmed that it received a proposal from Robert F.X. Sillerman, the Company's Chairman and Chief Executive Officer, to negotiate with the Company a transaction whereby Robert F.X. Sillerman would acquire all of the outstanding shares of SFX Entertainment Inc (NASDAQ:SFXE) that he does not already own at a price of $4.75 per share in cash. According to Robert F.X. Sillerman's proposal, current shareholders will be offered an opportunity to remain as investors in the Company following any such acquisition. Mr. Sillerman currently owns approximately 39.8% of the outstanding common stock of SFX Entertainment.
On May 26, 2015, SFX Entertainment, Inc. announced it has signed a merger agreement whereby an affiliate of Robert F.X. Sillerman, the Company's Chairman and Chief Executive Officer, will acquire all the outstanding common stock of SFX that he does not already own. Mr. Sillerman owns approximately 37.4 percent of the outstanding common stock of SFX Entertainment. Under the terms of the agreement, SFX stockholders will receive $5.25 in cash for each share of SFX common stock they hold, in a transaction valued at approximately $774 million.
On October 14, 2015, Robert F.X. Sillerman delivered a non-binding letter to the Board of Directors of SFX Entertainment, Inc to propose a potential transaction for the Board's consideration. Under the proposed transaction, Mr. Sillerman would be prepared to acquire, through one or more acquisition vehicles, all of the outstanding shares of Common Stock not already beneficially owned by him for up to $3.25 per share in cash; at the same time, stockholders of the Company who wished to retain their equity interest in SFX Entertainment, Inc would have the option to do so, subject to a maximum of 75 shareholders, and roll over their shares into equity interests of the acquiror alongside Mr. Sillerman. Under the Proposed Transaction, each stockholder of SFX Entertainment, Inc (other than those who elect to roll over their shares) would receive at closing (i) an amount per share in cash equal to the sum of $1.75 plus 100% of the amount Mr. Sillerman receives, up to $50MM in the aggregate applied pro rata to all shareholders, for the credit and other support he has provided to the Company, and (ii) a non-tradeable contingent payment right entitling the holder to receive up to an additional $1.00 per share in cash upon future sale of SFX Entertainment, Inc.
Shares of SFX Entertainment, Inc declined from over $11.50 per share in late 2013 to as low as $0.40 per share on September 24, 2015.
On October 30, 2015, NASDAQ:SFXE shares closed at $0.93 per share.
Those who purchased shares of SFX Entertainment Inc (NASDAQ:SFXE) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
For more information on this press release visit:
Media Relations Contact
Email: Click to Email Michael Daniels