SFX Entertainment is facing a lawsuit and potential bankruptcy.
We’ve reported earlier that SFX Entertainment is not in the best shape right now. Far from it, actually. The company behind Tomorrowland, Mysteryland, Electric Zoo, Q-Dance and many more successful electronic festivals, is allegedly going bankrupt, due to its shares which are said to already be down by 70%.
Amongst all this mayhem, the company is now facing a class action lawsuit, i.e., they’re now being sued by all investors who purchased or otherwise acquired common stock. Apparently, the company is said to have mislead shareholders in connection with the acquisition by the company’s largest shareholder, CEO Robert Sillerman, and states that he knew he didn’t have the financing to complete the transaction. Not just this, Sillerman is said to have concealed the company’s dire condition from the third party and tried to get them on board regardless.
Things don’t look good for Sillerman or SFX. For a company that was singlehandedly dominating the live electronic scene less than a year ago, SFX has endured some massive hits over the summer, and doesn’t seem like it will hold out much longer. Keep tabs here for updates.