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Parent Company of Dorney Park Faces Class Action Lawsuit over Financial Claims
The Livonia pension fund claims Six Flags hid extensive park neglect and rising costs before and after its $8 billion merger, causing a nearly 64% stock drop, the lawsuit states.
- Last week, a Livonia, Michigan municipal pension fund filed a federal lawsuit in the U.S. District Court for the Northern District of Ohio, alleging Six Flags Entertainment Corporation misled shareholders entitled to vote on the merger and seeking damages for losses.
- Plaintiffs say legacy parks suffered chronic underinvestment, deferred repairs and staffing cuts while company executives told investors of 'transformational investments' despite rising costs and disappointing earnings.
- Market moves reflect that Six Flags' share price fell from more than $55 to $18 as of Monday, and preliminary attendance for five-week period ending Nov. 2 was 5.8 million, with recent earnings showing negative results.
- Executives have signaled departures as named defendants Selim Bassoul and Richard Zimmerman announce resignations amid poor performance, while observers warn a court loss could divert millions from Kings Island and Cedar Point.
- The $8 billion merger positioned Six Flags as North America’s largest regional amusement park operator, with 27 amusement parks, 15 water parks, nine resorts, over $5 billion in debt, and a $1.57 billion market cap.
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Lawsuit against Six Flags comes as amusement park giant faces major financial issues
CLEVELAND, Ohio — A federal lawsuit that alleges Six Flags misled investors about park conditions before its merger comes at a time when the amusement park giant faces major financial setbacks.
·Cleveland, United States
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Total News Sources11
Leaning Left0Leaning Right5Center5Last UpdatedBias Distribution50% Center, 50% Right
Bias Distribution
- 50% of the sources are Center, 50% of the sources lean Right
50% Right
C 50%
R 50%
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