Six Flags Entertainment Corporation (NYSE: SIX) Investor Securities Class Action Lawsuit 02/12/2020

If you purchased a significant amount of shares of Six Flags Entertainment Corporation (NYSE: SIX) between April 25, 2018 and January 9, 2020, and / or if you purchased any NYSE: SIX shares prior to April 2018 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 13, 2020. NYSE: SIX investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Six Flags Entertainment
Case Name: 
Six Flags Entertainment Shareholder Class Action Lawsuit 02/12/2020
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: SIX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/12/2020
Class Period Begin: 
04/25/2018
Class Period End: 
01/09/2020
Court of Filing: 
U.S. District Court for the Northern District of Texas
Deadline To File for Lead: 
04/13/2020
Summary: 

An investor in shares of Six Flags Entertainment Corporation (NYSE: SIX) filed a lawsuit in the U.S. District Court for the Northern District of Texas over alleged violations of Federal Securities Laws by Six Flags Entertainment Corporation in connection with certain allegedly false and misleading statements made between April 25, 2018 and January 9, 2020.

Grand Prairie, TX based Six Flags Entertainment Corporation owns and operates regional theme and water parks under the Six Flags name. Six Flags Entertainment Corporation reported that its annual Total Revenue rose from over $1.35 billion in 2017 to over $1.46 billion in 2018 and that its Net Income increased from $273.81 million in 2017 to $275.99 million in 2018.

Beginning on February 14, 2019, when Six Flags Entertainment Corporation announced a negative $15 million revenue adjustment for the fourth quarter of 2018 due to delays in the expected opening dates of some of its China parks, which the Company falsely blamed on macroeconomic issues in China.
Then, on October 23, 2019, Six Flags Entertainment Corporation again postponed the timing of its park openings in China, stating "it's unrealistic to think it's going to be exactly as we've outlined."
Finally, on January 10, 2020, Six Flags Entertainment Corporation disclosed that the development of its Six Flags-branded parks in China continued to encounter challenges and had not progressed as expected, placing the future of its China parks in jeopardy. Six Flags Entertainment Corporation also revealed that Riverside continued to face significant financial challenges, which caused Riverside to default on its payment obligations to Six Flags. As a result of these disclosures, the price of Six Flags Entertainment Corporation common stock declined precipitously.

Shares of Six Flags Entertainment Corporation (NYSE: SIX) declined from $59.52 per share in August 2019 to as low as $35.06 per share on January 13, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of Six Flags Entertainment Corporation (NYSE: SIX) common shares between April 25, 2018 and January 9, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 25, 2018 and January 9, 2020, the defendants made materially false and misleading statements regarding the Company's business, operations, and growth prospects related to its agreements with Riverside to develop parks in China.

The plaintiff claims that as development of those parks began to face delays, Defendants misled investors by downplaying the problems as "short-term" and "not material in the context of the long-term opportunity”, that the Defendants also assured investors that Riverside was "work[ing] through" the macroeconomic issues in China and that Riverside was in "great shape" financially, that in truth, Riverside was in severe financial distress and did not have the resources to timely complete its projects with Six Flags, and that as a result of Defendants' misrepresentations, shares of Six Flags' common stock traded at artificially inflated prices between April 25, 2018 and January 9, 2020.