SAN FRANCISCO, CA / ACCESSWIRE / April 10, 2020 / The law firm of Lieff Cabraser Heimann & Bernstein, LLP reminds investors of the upcoming deadline to move for appointment as lead plaintiff in the class action litigation on behalf of investors who purchased shares of the common stock of Six Flags Entertainment Corporation ("Six Flags" or the "Company") (SIX) between April 25, 2018 and February 19, 2020, inclusive (the "Class Period").
If you purchased shares of the common stock of Six Flags during the Class Period, you may move the Court for appointment as lead plaintiff by no later than April 13, 2020. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Six Flags investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Six Flags, incorporated in Delaware and headquartered in Grand Prairie, Texas, is the largest regional theme park operator in the world, with 26 parks across North America.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements to investors regarding the Company's business, operations, and growth prospects in connection with its agreements with Riverside Investment Group Co. Ltd. ("Riverside"), a real estate developer, to develop Six Flags-branded theme parks in China. Further, defendants misled investors by assuring that delays in developing the parks were "short term," that the problems were "not material in the context of long-term opportunity," and that Riverside was in "great shape" financially.
The truth about defendants' fraud began to emerge on February 14, 2019, when Six Flags announced a negative $15 million revenue adjustment for fourth quarter of 2018 as a result of delays in the opening of multiple parks in China, which the Company falsely attributed to macroeconomic issues in China. On this news, the Company's stock price fell $9.00 per share, or over 14%, from its closing price on February 13, 2019 to close at $54.87 per share on February 14, 2019, on unusually heavy trading volume.
On October 23, 2019, the Company again announced delays in its park openings in China. In addition, Six Flags reported a 26% drop in international agreements, sponsorship and accommodations revenue for the third quarter of 2019 compared to the third quarter of 2018. On these disclosures, Six Flags's stock price fell $6.35 per share, or 12.4%, from its closing price on October 22, 2019 to close at $44.88 per share on October 23, 2019.
On January 10, 2020, Six Flags revealed that it continued to encounter challenges in the development of its parks in China, that Riverside had defaulted on its payment obligations to Six Flags, and that the Company would realize no revenue from its agreements with Riverside in the fourth quarter 2019 and expected a negative $1 million revenue adjustment in connection with those agreements. Six Flags also disclosed approximately $10 million in charges related to Riverside's default. On this news, Six Flags's stock price fell $7.80 per share, or approximately 17.8%, from its closing price of $43.76 on January 10, 2020 to close at $35.96 per share the next day, January 11, 2020.
On February 20, 2020, before the market opened, the Company disclosed that it had ended its development agreements with Riverside due to the defaulted payment obligations to Six Flags during 2019. Additionally, the Company revealed that it likely would not recognize any revenue or income from developing the Six Flags parks in China. The Company also issued disappointing earnings guidance for 2020 as a result of lower revenues from international development agreements and, further, disclosed the immediate departure of its Chief Financial Officer, defendant Marshall Barber. In response to these disclosures, Six Flags's stock price declined $6.13 per share from its closing price of $38.02 on per share on February 19, 2020, to close at $31.89 per share on February 20, 2020, or more than 16%, on high trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation's top plaintiffs' law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms "representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity." Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm's "laser focus" and noting that our firm routinely finds itself "facing off against some of the largest and strongest defense law firms in the world." Benchmark Litigation has named Lieff Cabraser one of the "Top 10 Plaintiffs' Firms in America."
For more information about Lieff Cabraser and the firm's representation of investors, please visit https://www.lieffcabraser.com/.
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP
SOURCE: Lieff Cabraser Heimann & Bernstein, LLP
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