Cedar Fair(US:FUN) Globenewswire·2026-01-05 16:01Core Viewpoint - A class action lawsuit has been filed against Six Flags Entertainment Corporation for failing to disclose critical financial information related to its merger with Cedar Fair, L.P., which has led to significant losses for investors [2][8]. Group 1: Lawsuit Details - The lawsuit is on behalf of all individuals and entities who purchased Six Flags common stock in connection with the merger registration statement issued on July 1, 2024 [2]. - Investors have until January 5, 2026, to apply to the Court to be appointed as lead plaintiff in the lawsuit [2]. Group 2: Allegations - The registration statement allegedly failed to disclose that Legacy Six Flags suffered from chronic underinvestment, requiring millions in additional capital and operational expenditures to maintain its market position [8]. - Following the appointment of CEO Selim Bassoul in November 2021, significant employee layoffs were made to cut costs, which negatively impacted operational competence and guest experience [8]. - At the time of the merger, it was revealed that Legacy Six Flags needed a substantial undisclosed capital infusion, undermining the rationale for the merger as presented [8]. Group 3: Stock Performance - On the merger closing date, Six Flags stock traded above $55 per share, but subsequently fell to as low as $20 per share, representing a nearly 64% decline [8].