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SFX settles one of two outstanding lawsuits

The company is now relieved of a $100 million problem

  • Mixmag Staff
  • 25 January 2016
SFX settles one of two outstanding lawsuits

In August of 2015, SFX received another piece of disconcerting news regarding an expensive lawsuit being filed against CEO of the company, Robert Sillerman by Paolo Moreno. Moreno claimed that he was the one with the original idea behind SFX and filed the lawsuit after he and two other plaintiffs were cut out of the picture once Sillerman and SFX had begun to gain serious revenue.

In July, Moreno's claims of fraud and breach of contract had been moved forward to trial by a judge of the California District. In addition, all movements to dismiss the case were rejected thanks to email evidence that confirmed Moreno's involvement in the SFX partnership early on.

Just about six months later, the lawsuit between Moreno and company against the SFX body seems to have come to an abrupt conclusion. In documents obtained by Mixmag, the class action lawsuit has been dismissed by the plaintiffs.

According to a timeline of the case, the official notice of settlement was given on January 22.

The conclusion of one of the two outstanding class action lawsuits against SFX is a rare instance of good news that the company has seen after quite an extensive string of dismal events, including a report that claimed that SFX Entertainment was teetering towards bankruptcy.

However, in more recent headlines, SFX's luck seems to be taking a turn for the better. Canadian private equity firm Catalyst Capital Group was recently revealed as the body behind a generous $20 million investment into the company that boosted their shares up by 57 per cent.

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