RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Six Flags Entertainment Corporation ("Six Flags" or the "Company") (NYSE: SIX) securities during the period from April 25, 2018 and January 9, 2020, inclusive (the “Class Period”).
Six Flags shareholders may, no later than April 13, 2020, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Six Flags and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
In June 2014, Six Flags announced an exclusive agreement with Riverside Investment Group Co. Ltd. ("Riverside"), which would provide capital investment for future developments in China.
On February 14, 2019, Six Flags disclosed a $15 million revenue adjustment for fourth quarter 2018 due to delays in expected opening dates of some parks in China. In the press release, the Company stated that "[t]his resulted in a 38 percent decline in sponsorship, international agreements and accommodations revenue compared to the fourth quarter of 2017."
On this news, the Company’s share price fell $9.00, or over 14%, to close at $54.87 per share on February 14, 2019, on unusually heavy trading volume.
Then, on October 23, 2019, Six Flags postponed park openings in China and stated that "it’s unrealistic to think it’s going to be exactly as we’ve outlined."
On this news, the Company’s share price fell $6.35, or over 12%, to close at $44.88 per share on October 23, 2019, on unusually heavy trading volume.
Then, on January 10, 2020, Six Flags announced that parks in China continued to encounter challenges and that the Company expected a $1 million revenue adjustment related to certain agreements.
On this news, the Company’s share price fell $7.80, or nearly 18%, to close at $35.96 per share on January 10, 2020, on unusually heavy trading volume.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Riverside faced far more financial distress than disclosed to investors; (2) as a result, there was a high likelihood that Riverside would default on its payment obligations to the Company; (3) the Company’s international strategy, which relied predominantly on its exclusive agreements with Riverside to develop Six Flags-branded parks in China to drive revenue growth, was significantly less promising than represented to investors; and (4) as a result of the foregoing, Defendants’ statements about the Company’s business, operations and prospects lacked a reasonable basis.
If you are a member of the class, you may, no later than April 13, 2020, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.