Six Flags faces class action lawsuit

SANDUSKY — Six Flags is facing a potential class action lawsuit from investors who said the company misled shareholders around the time of its 2024 merger with Cedar Fair. The suit was filed earlier this month by attorneys representing a retirement fund for city workers in Livonia, Michigan. The investors' group claims Six Flags misrepresented its level of investment in its parks prior to the company's merger, which formed a corporate entity valued at an estimated $8 billion. "Prior to the merger, (Six Flags) had, for years, deferred or forgone basic park maintenance, operational improvements, infrastructure repairs and ride design and development updates," the lawsuit alleges, claiming that the company failed to disclose that to investors. The suit additionally accuses the company of making "untrue statements" in documentation it filed at the time of the merger. It follows a year of disappointing earnings for the company and rising debt, leading the company to recently explore the possibility of selling off some parks and seeing the departures of president and CEO Richard Zimmerman and executive chairman Selim Bassoul. Those two and others in Six Flags' administration are named defendants in the suit. The lawsuit states unit holders suffered major losses, pointing to its stock price at the time of the merger — above $55 per share — and its more than 60% decline since then. At the close of trading Friday, Six Flags' share price was at about $15 per share. As of Friday evening, Six Flags and its attorneys have not yet filed a response to the lawsuit, which was filed in federal court for Ohio's northern district. The court docket indicates Six Flags was served with the lawsuit on Nov. 7 but does not indicate any future court dates or any deadlines for Six Flags to file its response.