Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Six Flags Entertainment Corporation (“Six Flags” or the “Company”) (NYSE: FUN) common stock pursuant or traceable to the Company’s registration statement and prospectus issued in connection with the July 1, 2024 merger of Six Flags with Cedar Fair, L.P. (“Cedar Fair”), and their subsidiaries and affiliates. Six Flags investors have until January 5, 2026 to file a lead plaintiff motion.
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What Happened?
On July 1, 2024, Six Flags completed a merger with Cedar Fair to create North America’s largest regional amusement park operator with a portfolio of approximately 40 amusement parks, water parks, and resort properties (the “Merger”).
On August 6, 2025, Six Flags released its second quarter 2025 financial results, revealing revenue of just $930 million and adjusted EBITDA of $243 million – well below consensus estimates. The Company also revealed its debt-to-earnings leverage ratio had increased to 6.2x, causing it to consider the “divestiture of non-core assets.”
The Company slashed its 2025 EBITDA guidance by $215 million at the midpoint and announced that Richard Zimmerman, Six Flag’s CEO and former Cider Fair CEO, was stepping down.
While Six Flags cited “weather” for the poor results, several analysts found it more likely that rising costs and the inability to achieve certain Merger benefits were to blame.
On the Merger closing date, July 1, 2024, Six Flags stock traded above $55 per share. The price of Six Flags stock subsequently fell as low as $20 per share, a nearly 64% decline, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that the Registration Statement for the Merger was negligently prepared and, as a result, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Six Flags had underinvested in its parks and operations, deferring or foregoing basic park maintenance, operational improvements, infrastructure repairs, and ride design and development for several years prior to the Merger; (2) that Six Flags needed to make millions of dollars’ worth of undisclosed capital and operational expenditures above the company’s historical cost trends in order to maintain or grow Six Flags’ share in the intensely competitive amusement park market; (3) that, due to the massive, undisclosed capital needs of Six Flags and the deleterious effects of years of chronic disinvestment by the company, the revenue, earnings, cash flow, capital and operational investments, cost reductions, balance sheet improvements, and debt reduction plans presented to investors in the Registration Statement were not reasonably achievable or rooted in facts existing at the time of the Merger; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Six Flags common stock pursuant or traceable to the Merger, you may move the Court no later than January 5, 2026, to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251117656149/en/
Contacts
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: shareholders@glancylaw.com
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.