Six Flags Faces Legal Challenge from Class Action Lawsuit Post-Merger
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Globenewswire
- Lawsuit Background: A class action lawsuit has been filed against Six Flags Entertainment Corporation (formerly CopperSteel HoldCo, Inc.) concerning the registration statement related to its merger with Cedar Fair on July 1, 2024, alleging significant misstatements that could lead to investor losses.
- Merger Issues: The complaint claims that despite executives' assertions of transformational investments, Six Flags suffered from chronic underinvestment, necessitating millions in additional capital expenditures to maintain market share, thereby undermining the merger's rationale.
- Management Changes: Since the appointment of CEO Selim Bassoul in November 2021, the company has implemented aggressive layoffs, significantly degrading operational competence and guest experience, which exacerbates its financial crisis.
- Investor Action: Investors must apply by January 5, 2026, to be appointed as lead plaintiffs to participate in potential recoveries, with the law firm promising to charge fees only upon success, thus reducing legal risks for investors.
FUN
$14.08+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: 14.290
Low
20.00
Averages
26.64
High
40.00
Current: 14.290
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.
