Overview
- A Nov. 5 complaint by the Livonia, Michigan municipal pension fund in federal court in Toledo alleges Six Flags filed a “negligently prepared” SEC merger statement that masked deferred maintenance and staffing cuts at legacy parks.
- The suit seeks class-action status, compensatory damages and legal fees, names Selim Bassoul and Richard Zimmerman as defendants, and the company declined comment while no formal response has been filed.
- Since the July 2024 merger with Cedar Fair, the share price has dropped from above $55 to roughly $16–18, the market value is about $1.7 billion, and total debt is near $5 billion.
- Company disclosures report sharply higher operating costs and disappointing results, with preliminary attendance for the five weeks ending Nov. 2 down 11% to 5.8 million.
- Executives are evaluating which parks to keep or monetize to reduce leverage; Six Flags America in Maryland closed permanently this month and California’s Great America is slated to close in 2027, as CFO Brian Witherow prioritizes investment in high-return parks.