Overview
- The lawsuit, filed last week and identified in the latest report as brought by a municipal pension fund in Livonia, Michigan, seeks class status and damages under federal securities law.
- Plaintiffs say Six Flags touted “transformational investments” while deferring basic repairs and reducing staffing at legacy parks prior to the merger.
- The complaint names executives Selim Bassoul and Richard Zimmerman, who have announced plans to step down following weak results.
- Six Flags shares have fallen from more than $55 before the merger to about $18 as of Monday after higher operating costs and disappointing earnings.
- The company reports more than $5 billion in debt, an 11% attendance drop for the five weeks ending Nov. 2, planned asset sales, and a 2027 shutdown of California’s Great America, with local coverage warning of potential pressure on Cedar Point investment and guest experience.