Cedar Fair(US:FUN) Globenewswire·2025-11-07 20:46Core Viewpoint - A class action lawsuit has been filed against Six Flags Entertainment Corporation, alleging that the company misled investors regarding its merger with Cedar Fair, L.P. The lawsuit claims that Legacy Six Flags had significant undisclosed capital needs and operational deficiencies prior to the merger, which were not communicated to investors [1][2]. Summary by Sections 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. Following the merger, the new entity was named Six Flags and began trading under the ticker symbol "FUN" on the NYSE [2]. Allegations Against Six Flags - The complaint alleges that: - Legacy Six Flags had underinvested in its parks, deferring essential maintenance and improvements for several years before the merger [2]. - The company required millions in undisclosed capital expenditures to maintain or grow its market share in the competitive amusement park industry [2]. - 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]. Stock Performance - On the merger closing date, Six Flags stock was trading above $55 per share. However, the stock price subsequently plummeted to as low as $20 per share, representing a decline of nearly 64% [3]. Class Action Participation - Shareholders interested in participating in the class action must submit their papers by January 5, 2025. They can choose to remain absent from the case while still being eligible for recovery [4]. Company Background - Robbins LLP is noted for its focus on shareholder rights litigation, aiming to help shareholders recover losses and improve corporate governance since 2002 [5].