Prnewswire·2025-11-17 12:55Core 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, previously known as CopperSteel HoldCo, Inc., is an amusement park operator that recently underwent a merger with Cedar Fair, L.P. on July 1, 2024 [2][3]. Legal Allegations - The lawsuit claims that the registration statement for the merger failed to disclose chronic underinvestment in Legacy Six Flags, which required substantial additional capital to maintain operations and competitiveness in the amusement park market [3]. - It is alleged that the company's executives, including CEO Selim Bassoul, misled investors by claiming that transformational investment initiatives were pursued, while in reality, the company was in dire need of undisclosed capital [3]. Financial Impact - Following the merger, Six Flags' stock price dropped from over $55 per share to as low as $20 per share, representing a nearly 64% decline [4].