NEW YORK, Sept. 14, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased SFX Entertainment, Inc. (“SFX” or the “Company”) (Nasdaq:SFXE) securities between February 25, 2015 and August 17, 2015, inclusive (the “Class Period”). The Complaint charges the Company and certain of its officers and directors with violations of the federal securities laws.
The Complaint alleges that throughout the Class Period, Defendant Robert F.X. Sillerman, SFX’s Chief Executive Officer and largest shareholder, 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 also alleges that given the Company’s growing debt and decreasing margins it was not feasible that Defendant Sillerman was ever going to buy the Company and, with the aid of the other defendants, Defendant 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.
If you wish to serve as lead plaintiff, you must move the Court no later than November 10, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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