WASHINGTON, Oct. 16, 2015 (GLOBE NEWSWIRE) -- Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether SFX Entertainment, Inc. ("SFX" or the "Company") and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

A class action lawsuit was filed in the U.S. District Court for the Southern District of New York by another law firm on behalf of purchasers of the common stock of SFX Entertainment, Inc. (NASDAQ:SFXE) between February 25, 2015 to August 17, 2015, inclusive (the "Class Period"). 

The complaint alleges that SFX and certain of its officers and directors ("Defendants") made materially false and misleading statements concerning the proposed acquisition by Robert F.X. Sillerman, Chief Executive Officer of SFX, of the Company's remaining outstanding shares in a going private transaction. Specifically, plaintiff alleges that: (1) while Sillerman repeatedly affirmed his commitment to acquire SFX, he failed to disclose that he did not have any financing in place at the time he made his proposal and could not obtain the financing to consummate the transaction; and (2) by entering into a definitive merger agreement pursuant to which an affiliate of Sillerman would acquire all of the outstanding shares of SFX, Defendants misrepresented that SFX was worth $5.25 per share and that Sillerman's proposed transaction was credible and feasible.

According to the complaint, Defendants' statements were designed to and did inflate SFX's share price in order to keep SFX as an attractive acquisition candidate for a third party purchaser at a price greater than $5.25.

After the market close on August 17, 2015, SFX announced that it had terminated the merger agreement it had entered into with certain Sillerman affiliates on May 26. The price of SFX shares fell from $1.33 to $1.15 on August 18, and closed at $1.04 on August 19.

Cohen Milstein encourages all investors who purchased SFX common stock between February 25, 2015 to August 17, 2015, or former employees with information concerning this matter to contact the firm.

If you are an SFX shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than November 10, 2015 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.

Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over two billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.
Ryan Marchbank
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; rmarchbank@cohenmilstein.com

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