The Wall Street Journal has revealed that three dance music moguls are suing SFX Founder Robert Sillerman. Paolo Moreno, a former manager for "Disco Donnie" Estopinal, his brother Gabriel, and Lawrence Vavra, an artist manager, have filed a lawsuit alleging that Mr. Sillerman defrauded them of stock worth over an estimated $100 Million.
The three claim that in emails Sillerman promised them cash, stock options, and more than 2.5 million shares in the corporation that they were later defrauded of through various financial shenanigans and unfulfilled promises. They allege that Sillerman approached them as members of a partnership that they were soon squeezed out of. SFX shares were down 8.20% on the NASDAQ today.
By Edward Fancher