Cedar Fair(US:FUN) Globenewswire·2025-11-25 20:27Core Viewpoint - A class action lawsuit has been filed against Six Flags Entertainment Corporation, alleging that the company made false and misleading statements regarding its merger with Cedar Fair, L.P. and its financial health prior to the merger [1][3]. Summary by Sections Merger Details - The merger between Legacy Six Flags and Cedar Fair closed on July 1, 2024, after receiving shareholder approval on March 12, 2024. The merged entity was renamed CopperSteel HoldCo, Inc., which later changed its name to Six Flags and began trading under the ticker symbol "FUN" on the NYSE [1][3]. Allegations - The lawsuit claims that Legacy Six Flags had significantly underinvested in its parks and operations, neglecting essential maintenance and improvements for several years before the merger [3]. - It is alleged that Legacy Six Flags required millions of dollars in undisclosed capital and operational expenditures to maintain or grow its market share in the competitive amusement park industry [3]. - 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, due to the undisclosed capital needs and chronic disinvestment [3]. 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 nearly 64% decline [4].