Globenewswire·2025-11-12 19:05Core Viewpoint - The article discusses a class action lawsuit against Six Flags Entertainment Corporation, alleging that the company and its executives misled investors regarding the financial health and operational needs of the company prior to its merger with Cedar Fair, L.P. [1][3] 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 significant underinvestment in Legacy Six Flags, which required millions in additional capital to maintain operations [3]. - It is alleged that the new CEO, Selim Bassoul, implemented cost-cutting measures that degraded operational competence and guest experience, further exacerbating the company's financial issues [3]. Legal Proceedings - Investors who purchased Six Flags stock in connection with the merger have until January 5, 2026, to seek appointment as lead plaintiff in the class action lawsuit [1].