Key Takeaways
- Investors who purchased Six Flags Entertainment Corporation common stock between July 1, 2024, and the present have until January 5, 2026, to file lead plaintiff applications in a securities class action lawsuit.
- The lawsuit alleges that Six Flags and its executives failed to disclose material information in the registration statement for the company’s merger with Cedar Fair, L.P.
- The alleged failure to disclose information includes the company’s chronic underinvestment, aggressive cost-cutting measures, and the need for a substantial capital infusion to stabilize and revitalize its business.
- The price of Six Flags stock has declined by nearly 64% since the merger, from above $55 per share to as low as $20 per share.
- Investors can contact Kahn Swick & Foti, LLC to discuss their legal rights and potential recovery for economic losses.
Introduction to the Lawsuit
The law firm of Kahn Swick & Foti, LLC, along with its partner, former Attorney General of Louisiana Charles C. Foti, Jr., is reminding investors that they have a limited time to file lead plaintiff applications in a securities class action lawsuit against Six Flags Entertainment Corporation. The lawsuit, which is pending in the United States District Court for the Northern District of Ohio, alleges that Six Flags and certain executives failed to disclose material information in the registration statement for the company’s merger with Cedar Fair, L.P. This failure to disclose information is claimed to have violated federal securities laws and resulted in significant economic losses for investors.
Background on the Merger and Allegations
The merger between Six Flags Entertainment Corporation and Cedar Fair, L.P. was completed on July 1, 2024. However, the lawsuit alleges that the registration statement for the merger failed to disclose several key pieces of information. Specifically, it is claimed that Legacy Six Flags, the predecessor company to Six Flags Entertainment Corporation, suffered from chronic underinvestment and required millions of dollars in additional capital and operational expenditures to maintain or grow its share in the competitive amusement park market. Furthermore, the company’s aggressive cost-cutting measures, including significant reductions in employee headcount, are alleged to have materially degraded operational competence and guest experience. As a result, Legacy Six Flags required a substantial and undisclosed capital infusion to stabilize and revitalize its business, which fundamentally undermined the rationale for the merger as presented in the registration statement.
Impact on Investors
The alleged failure to disclose this information had a significant impact on investors. On the day of the merger, Six Flags stock traded above $55 per share. However, the price of the stock subsequently fell to as low as $20 per share, a decline of nearly 64%. This significant decline in stock price has resulted in substantial economic losses for investors who purchased Six Flags common stock pursuant to the registration statement for the merger. Investors who suffered losses as a result of the alleged failure to disclose material information may be eligible to recover damages through the securities class action lawsuit.
About Kahn Swick & Foti, LLC
Kahn Swick & Foti, LLC is a boutique securities litigation law firm that has a strong track record of success in recovering damages for investors. The firm, which has offices in several locations, including New York, Delaware, and Louisiana, serves a variety of clients, including public and private institutional investors and retail investors. In the past year, KSF was ranked among the top 10 firms nationally based on total settlement value. The firm’s partners, including former Louisiana Attorney General Charles C. Foti, Jr., have extensive experience in securities litigation and are committed to helping investors recover losses resulting from corporate fraud or malfeasance.
Next Steps for Investors
Investors who purchased Six Flags common stock between July 1, 2024, and the present and suffered losses as a result of the alleged failure to disclose material information have until January 5, 2026, to file lead plaintiff applications in the securities class action lawsuit. Investors who wish to discuss their legal rights and potential recovery for economic losses can contact Kahn Swick & Foti, LLC without obligation or cost. The firm’s managing partner, Lewis Kahn, can be reached toll-free at 1-877-515-1850 or via email at [email protected]. Additionally, investors can visit the firm’s website at https://www.ksfcounsel.com/cases/nyse-fun/ to learn more about the lawsuit and the potential for recovery.
