Six Flags Faces Investor Lawsuit Over Merger Misrepresentation
Written by Emily J. Thompson, Senior Investment Analyst
Source: PRnewswire
Updated: 13 hour ago0mins
- Lawsuit Background: National plaintiffs' law firm Berger Montague PC has announced a class action lawsuit against Six Flags Entertainment Corp., representing investors who purchased shares between July 1, 2024, and November 5, 2025, related to the merger with Cedar Fair L.P.
- Investor Deadline: Investors must apply by January 5, 2026, to be appointed as lead plaintiff representatives, highlighting concerns over misrepresentation during the merger process.
- Stock Price Volatility: Following the merger's completion, Six Flags' stock traded above $55 but later plummeted to $20, marking a nearly 64% decline, which reflects market apprehension regarding the company's financial health.
- Concealed Capital Needs: The lawsuit alleges that the merger registration statement failed to accurately convey Six Flags' true operational and capital needs, as it faced years of underinvestment despite claims of significant investments, necessitating substantial spending to maintain market share.
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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: 14.890
Low
20.00
Averages
26.64
High
40.00
Current: 14.890
Low
20.00
Averages
26.64
High
40.00
UBS
Arpine Kocharyan
Buy
downgrade
$34 -> $27
2025-11-21
Reason
UBS
Arpine Kocharyan
Price Target
$34 -> $27
2025-11-21
downgrade
Buy
Reason
UBS analyst Arpine Kocharyan lowered the firm's price target on Six Flags to $27 from $34 and keeps a Buy rating on the shares.
UBS
Buy
downgrade
$34 -> $27
2025-11-20
Reason
UBS
Price Target
$34 -> $27
2025-11-20
downgrade
Buy
Reason
UBS lowered the firm's price target on Six Flags to $27 from $34 and keeps a Buy rating on the shares. The firm's analysis shows $115M-$125M of revenue decline at underperforming parks is driving a $150M+ decrease in EBITDA with significant decremental margins of more than 128%. The magnitude of decremental margin shows execution issues are fixable and better cost management even in case of much worse macro could allow Six Flags tot better protect margins, the analyst tells investors in a research note.
Mizuho
Outperform -> NULL
downgrade
$28 -> $24
2025-11-12
Reason
Mizuho
Price Target
$28 -> $24
2025-11-12
downgrade
Outperform -> NULL
Reason
Mizuho lowered the firm's price target on Six Flags to $24 from $28 and keeps an Outperform rating on the shares following the Q3 report. The firm sees the company's per cap spending improving from here. Six Flags' results were pressured by the "bring a friend" promotion and higher mix of season pass visitation, which should both ease in Q4, the analyst tells investors in a research note.
JPMorgan
Matthew Boss
Underweight
downgrade
$24 -> $20
2025-11-12
Reason
JPMorgan
Matthew Boss
Price Target
$24 -> $20
2025-11-12
downgrade
Underweight
Reason
JPMorgan analyst Matthew Boss lowered the firm's price target on Six Flags to $20 from $24 and keeps an Underweight rating on the shares. The firm updated models in the leisure group.
See All Ratings
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
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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.
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What are the primary allegations against Six Flags in the lawsuit?
Why did Six Flags fail to disclose its capital expenditure needs pre-merger?
How might the class action lawsuit affect Six Flags' stock price in 2026?
What could be the long-term impact of the lawsuit on Six Flags' operations?