Six Flags Faces Class Action Lawsuit Post-Merger, Stock Plummets 64%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: PRnewswire
- Lawsuit Background: National plaintiffs' law firm Berger Montague PC has announced a class action lawsuit against Six Flags Entertainment Corp. on behalf of investors who purchased shares between July 1, 2024, and November 5, 2025, alleging that the merger registration statement failed to accurately reflect the company's financial condition.
- Stock Volatility: Following the merger completion on July 1, 2024, Six Flags' stock traded above $55 but subsequently plummeted to as low as $20, representing a staggering 64% loss, indicating severe market concerns regarding the company's post-merger outlook.
- Investor Rights: Investors must apply by January 5, 2026, to be appointed as lead plaintiffs in the class action, reflecting strong dissatisfaction with the transparency and disclosure during the merger process.
- Capital Needs Concerns: The lawsuit highlights that Six Flags had faced years of underinvestment prior to the merger, necessitating substantial capital to remain competitive, a risk that was not disclosed in the merger narrative, potentially undermining future investor confidence.
FUN
$13.605+Infinity%1D
Analyst Views on FUN
Wall Street analysts forecast FUN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FUN is 26.64 USD with a low forecast of 20.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
8 Buy
3 Hold
1 Sell
Moderate Buy
Current: 13.780
Low
20.00
Averages
26.64
High
40.00
Current: 13.780
Low
20.00
Averages
26.64
High
40.00
About FUN
Six Flags Entertainment Corporation is an amusement-resort operator with approximately 27 amusement parks, 15 water parks and nine resort properties across 17 states in the United States, Canada and Mexico. The Company has a portfolio of intellectual property, such as Looney Tunes, DC Comics and PEANUTS. Its parks are family-oriented, with recreational facilities for people of all ages. The Company's parks include Cedar Point Shores, Valleyfair, Dorney Park, Knott's Berry Farm Soak City, Canada's Wonderland, Kings Dominion, Schlitterbahn Waterpark and Resort New Braunfels, Schlitterbahn Waterpark Galveston, Six Flags Hurricane Harbor Oklahoma City, Six Flags Hurricane Harbor Concord, Six Flags St. Louis, Six Flags Hurricane Harbor Oaxtepec, Six Flags Great Adventure, Six Flags New England, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
