A lawsuit was filed by an investor in shares of SFX Entertainment Inc (NASDAQ:SFXE) in effort to halt the proposed takeover and NASDAQ:SFXE stockholders should contact the Shareholders Foundation.

San Diego, CA -- (SBWire) -- 06/22/2015 --An investor who currently holds shares of SFX Entertainment Inc (NASDAQ:SFXE), filed a lawsuit in effort to halt the proposed takeover of SFX Entertainment Inc. by an affiliate of Robert F.X. Sillerman, the Company's Chairman and Chief Executive Officer at $5.25 per share.

Investors who purchased shares of SFX Entertainment Inc (NASDAQ:SFXE) and currently hold any of those NASDAQ:SFXE shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 - 1554.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:SFXE stockholders by agreeing to sell SFX Entertainment Inc too cheaply via an unfair process.

On May 26, 2015, SFX Entertainment, Inc. announced it has signed a merger agreement whereby an affiliate of Robert F.X. Sillerman, the Company's Chairman and Chief Executive Officer, will acquire all the outstanding common stock of SFX that he does not already own. Mr. Sillerman owns approximately 37.4 percent of the outstanding common stock of SFX Entertainment. Under the terms of the agreement, SFX stockholders will receive $5.25 in cash for each share of SFX common stock they hold, in a transaction valued at approximately $774 million.

However, the plaintiff claims that the proposed consideration NASDAQ:SFXE unitholders will receive is grossly inadequate and undervalues SFX Entertainment, Inc. Indeed, at least one analyst has set the high target price for NASDAQ:SFXE shares at $7.00 per share and that NASDAQ:SFXE shares traded as recently as June 2014 as high as $8.35 per share, respectively $11.51 per share in December 2013. In addition, the plaintiff claims that the process is also unfair to NASDAQ:SFXE stockholders. The plaintiff says that the defendants agreed to preclusive deal protection devices, such as a no-solicitation clause a matching rights, and a $15million termination fee provision, that that prevent other competing offers

Shares of SFX Entertainment Inc (NASDAQ:SFXE) closed on June 18, 2015 at $4.43 per share.

Those who are current investors in SFX Entertainment Inc (NASDAQ:SFXE) shares have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com