The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired 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.
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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.
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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 purchased Six Flags securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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