Cedar Fair(US:FUN) Prnewswireยท2025-11-07 01:03Core Viewpoint - A class action lawsuit has been filed against Six Flags Entertainment Corporation (NYSE: FUN) on behalf of investors who acquired shares during the merger with Cedar Fair, alleging that the company misled investors regarding its financial health and operational needs prior to the merger [1][2]. Group 1: Merger Details - The merger between Legacy Six Flags and Cedar Fair was approved by shareholders on March 12, 2024, and closed on July 1, 2024, resulting in the creation of North America's largest regional amusement park operator with approximately 40 amusement parks and water parks [1][2]. - Following the merger, the newly formed entity changed its name to Six Flags and began trading under the ticker symbol "FUN" on the NYSE [2]. Group 2: Allegations Against Six Flags - The lawsuit alleges that Legacy Six Flags had significantly underinvested in its parks and operations, neglecting essential maintenance and improvements for several years before the merger [2]. - It is claimed that Legacy Six Flags required millions of dollars in undisclosed capital expenditures to maintain or grow its market share in the competitive amusement park industry [2]. - The complaint states that the financial projections presented to investors were unrealistic and not based on the actual conditions of the company at the time of the merger [2]. Group 3: Stock Performance - On the merger closing date, Six Flags stock was trading above $55 per share, but it subsequently plummeted to as low as $20 per share, marking a decline of nearly 64% [3].