As Wall Street Journal reports, SFX Entertainment, the company behind Beatport, Tomorrowland/TomorrowWorld, Nature One, Mayday etc., and founder Robert Sillerman are sued by music managers Paolo Moreno, Gabriel Moreno and Lawrence Vavra alleging that Sillerman defrauded them of stock worth over an estimated US$ 100 Million. The managers claim that they pitched the idea to combine their various music festivals with SFX. The relationship and execution of restarting SFX was supposed to warrant serious equity and ownership to the three individuals which -according to their statements- did not happen. Aside from that, a promise of 2.5 million “founders shares” were supposed to be handed out, but that also did not happen.
SFX has put out a statement in which these claims are described as „baseless“.
During the course of the past months, SFX has pushed itself into a major position in the world’s Dance scene with buying strategic companies like Beatport, ID&T or Germany’s i-motion which runs Nature One and Mayday. Not always with a good effect as already reported here and here.
What do you think?
(Source: Wall Street Journal. Picture courtesy of Billboard Magazine.)