#USA #New York #Securities Fraud #Kahn Swick Foti #Six Flags Entertainment

Six Flags Entertainment Faces Securities Fraud Class Action

In a troubling development, Six Flags Entertainment Corporation, previously known as CopperSteel HoldCo, Inc., is now embroiled in a securities fraud class action lawsuit. The case arises from undisclosed financial issues that led to a staggering decline of approximately 63% in the company's stock value. Investors who incurred significant losses due to this steep drop are being encouraged to take action promptly.

Kahn Swick & Foti, LLC (KSF), a prominent securities litigation law firm, alongside its partner Charles C. Foti, Jr. - a former Attorney General of Louisiana, is reminding affected investors that they have until January 5, 2026, to file applications as lead plaintiffs in the class action. The underlying cause of the lawsuit ties back to the merger that took place on July 1, 2024, between Legacy Six Flags Entertainment Corporation and Cedar Fair, L.P.

Background of the Case

According to the allegations, Six Flags executives are accused of failing to disclose crucial information regarding the company's financial standing in the registration statement associated with the merger. Investors were led to believe that the company had been pursuing substantial investment initiatives before the merger, but the reality was quite different. Evidence suggests that Legacy Six Flags had been suffering from chronic underinvestment, desperately needing millions of dollars in additional capital and operational funding to keep its parks competitive in the high-stakes amusement park market.

Moreover, after the appointment of CEO Selim Bassoul in November 2021, the company implemented aggressive cost-cutting measures, including drastic reductions in the workforce. These actions allegedly degraded both operational efficiency and guest experience, ultimately necessitating a substantial, unreported capital refresh to stabilize the business. This need for significant capital injection undermined the rationale of the merger presented to investors.

On the date of the merger's completion, Six Flags stock was valued at over $55 per share. However, following the announcement of these undisclosed financial realities, the share price plummeted to as low as $20 each, marking a decline of almost 64%.

Investor Actions and Rights

For investors who purchased shares of Six Flags during the merger process, this presents an opportunity to seek justice and potential compensation for their financial losses. KSF is offering a no-cost consultation to discuss the legal rights of the affected investors. Interested parties are encouraged to reach out to Lewis Kahn, KSF's Managing Partner, either through a toll-free phone number or email, or by visiting their official website for further information.

If you wish to be part of the class action as a lead plaintiff, it is crucial to file a petition with the court before the January deadline. The class action lawsuit is currently pending in the United States District Court for the Northern District of Ohio under the case number City of Livonia Employees' Retirement System v. Six Flags Entertainment Corporation, No. 25-cv-02394.

About Kahn Swick & Foti, LLC

Kahn Swick & Foti, LLC is known for its extensive experience in the realm of securities litigation, particularly aiding investors in recovering losses due to corporate fraud. With numerous offices across the United States, KSF has established itself as a leader in representing both institutional and retail investors in such high-stake litigations. Their recent ranking among the top ten law firms by SCAS based on total settlement value reinforces their reputation in the legal community.

As the situation continues to unfold, affected investors are urged to remain informed and proactive regarding their potential claims against Six Flags Entertainment Corporation. The stakes are high, and time is of the essence in seeking the recovery of lost investments.