Newsfile·2025-12-13 17:30Core 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, previously known as CopperSteel HoldCo, Inc., is an amusement park operator that has faced significant scrutiny following its merger with Cedar Fair, L.P. [2][3] 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 critical information about Legacy Six Flags' financial struggles, including chronic underinvestment and the need for substantial capital to maintain operations [3]. - It is alleged that the company's executives misrepresented the state of the business, claiming successful investment initiatives while the reality was a significant operational decline [3]. Executive Actions - After becoming CEO in November 2021, Selim Bassoul implemented cost-cutting measures that included reducing employee headcount, which negatively impacted operational competence and guest experience [3]. Legal Proceedings - The class action lawsuit is titled "City of Livonia Employees' Retirement System v. Six Flags Entertainment Corporation" and is filed in the Northern District of Ohio [1]. - Investors who suffered losses are encouraged to seek appointment as lead plaintiff by January 5, 2026 [1].