LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that it is investigating potential claims on behalf of investors of SFX Entertainment, Inc. ("SFX" or the "Company") (NASDAQ:SFXE) concerning the Company’s and its officers’ possible violations of federal securities laws in connection with SFX CEO’s alleged recklessness or fraud in proposing a sham purchase of the Company’s outstanding stock.
SFX engages in the production of live events and digital entertainment content that focuses on the electronic music culture (EMC) and other festivals. GPM’s investigation focuses on whether the Company made materially false and misleading statements in connection with the proposed acquisition of SFX by Robert F.X. Sillerman ("Sillerman"), SFX's CEO and largest shareholder, for all of the outstanding common stock he did not already own. However, Mr. Sillerman failed to disclose that he allegedly 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 complete the transaction. Mr. Sillerman’s proposal was allegedly a sham offer to increase the value of the Company’s shares, in the fact of the Company’s increasing debt and decreasing margins. Following the news that Mr. Sillerman would no longer consider purchasing the Company, shares of SFX have declined sharply in value.
If you purchased SFX securities, have information or would like to learn more about these claims including whether you qualify to serve as a class representative, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Casey Sadler, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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