SFX ENTERTAINMENT SETTLES LAWSUIT CLAIMING CEO ROBERT SILLERMAN STOLE COMPANY’S IDEA
With one settlement reached, there are more problems looming for SFX Entertainment and CEO Robert F.X. Sillerman
As SFX Entertainment attempts to pull itself back together after a tumultuous year in 2015, the company has recently reached a settlement regarding a lawsuit claiming CEO Robert Sillerman stole the company’s original idea. The settlement was reached with artist manager Lawrence Vavra, Disco Donnie Presents’ manager Paolo Moreno and his brother Gabriel.
Although the terms of the settlement have not been disclosed, Steven. N. Feldman from Hueston Hennigan LLP expressed to Billboard that the plaintiffs “are very satisfied with the settlement” as there was “less than two weeks before SFX and Mr. Sillerman were due to face trial.”
The lawsuit was issued due to Sillerman supposedly backing out of a deal with the plaintiffs after both parties entered a partnership agreement in order to acquire resources that resulted in SFX being the EDM giant that it is today. The Morenos and Vavra were expecting to obtain equity in SFX and Sillerman allegedly reneged on that promise.
With one settlement reached, SFX and Sillerman still have a long way to go. They are still in the middle of another legal dispute with shareholders who say they were initially given “false and misleading statements” regarding the company’s value. Not to mention the looming bankruptcy issue with SFX recently being bailed out by a private equity firm in Canada.
As of Tuesday, SFX stock was valued at 10.2 cents per share, a far way off from the company’s high point of $5.25.