Glancy Prongay & Murray LLP ("GPM"), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that purchased Six Flags Entertainment Corporation ("Six Flags" or the "Company") (NYSE: SIX) securities between April 25, 2018 and January 9, 2020, inclusive (the "Class Period"). Six Flags investors have until April 13, 2020 to file a lead plaintiff motion.
If you suffered a loss on your Six Flags investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information here or contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, via email email@example.com or visit our website at www.glancylaw.com to learn more about your rights.
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 purchased Six Flags securities during the Class Period, you may move the Court no later than April 13, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.