SHAREHOLDERS FILE SIX LAWSUITS AGAINST SFX ENTERTAINMENT
Published March 2, 2000
SFX Entertainment "was hit with six separate lawsuits"
filed by shareholders, claiming the terms of its agreement
to be acquired by Clear Channel Communications (see THE
DAILY, 3/1) "unfairly benefit one small group of
shareholders," according to a WALL STREET JOURNAL report.
One suit, filed in DE Chancery Court, "accuses" SFX
Entertainment of "favoring holders of the company's super-
voting Class B shares ahead of holders of Class A shares."
The other suits "make similar complaints." SFX Exec Chair
Robert Sillerman, who owns 90% of the 2.5 million Class B
shares, said that the terms of the agreement "are fair
because he would give up control of the company and because
he signed a noncompete agreement." SFX General Counsel
Howard Tytel said that he "doesn't expect" the lawsuits to
"delay the deal" (WALL STREET JOURNAL, 3/2).