Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of Texas on behalf of shareholders of Six Flags Entertainment Corporation who purchased shares between April 25, 2018 and January 9, 2020.
Six Flags and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On January 10, 2020, pre-market, the Company disclosed a range of negative information including difficulties and delays with the development of its parks in China and that its exclusive partner in the China projects, Chinese real estate developer, Riverside Investment Group Co. Ltd., had defaulted on its payment obligations to Six Flags. As a result, the Company would realize no revenue from its agreements with Riverside in the fourth quarter of 2019 and expected to make a negative $1 million revenue adjustment as well as one-time charges totaling approximately $10 million.
On this news, the price of Six Flags’ shares plummeted nearly 18% on high trading volume.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until April 13, 2020 to request that the court appoint them lead plaintiff.