Prnewswireยท2025-11-06 13:20Core Viewpoint - The class action lawsuit against Six Flags Entertainment Corporation alleges that the company misrepresented its financial health and operational needs during its merger with Cedar Fair, leading to significant stock price declines post-merger [3][4]. Company Overview - Six Flags Entertainment Corporation operates amusement parks and was formerly known as CopperSteel HoldCo, Inc. [2]. Merger Details - The merger between Legacy Six Flags and Cedar Fair was completed on July 1, 2024, with Six Flags stock initially trading above $55 per share [4]. - Following the merger, the stock price plummeted to as low as $20 per share, representing a nearly 64% decline [4]. Allegations of Misrepresentation - The lawsuit claims that the registration statement for the merger failed to disclose chronic underinvestment in Legacy Six Flags, which required millions in additional capital to maintain operations [3]. - It is alleged that the company's executives misled investors by claiming transformational investments were made prior to the merger [3]. - The new CEO, Selim Bassoul, reportedly cut employee headcount to reduce costs, which negatively impacted operational competence and guest experience [3]. Legal Proceedings - The class action lawsuit is titled "City of Livonia Employees' Retirement System v. Six Flags Entertainment Corporation" and was filed in the Northern District of Ohio [1]. - Investors have until January 5, 2026, to seek appointment as lead plaintiff in the lawsuit [1].