San Diego, CA -- (SBWIRE) -- 02/26/2020 -- An investor, who purchased NYSE: SIX shares, filed a lawsuit over alleged Securities Laws violations of Federal by Six Flags Entertainment Corporation in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Six Flags Entertainment Corporation (NYSE: SIX) have certain options and for certain investors are short and strict deadlines running. Deadline: April 13, 2020. NYSE: SIX investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Grand Prairie, TX based Six Flags Entertainment Corporation owns and operates regional theme and water parks under the Six Flags name. Six Flags Entertainment Corporation reported that its annual Total Revenue rose from over $1.35 billion in 2017 to over $1.46 billion in 2018 and that its Net Income increased from $273.81 million in 2017 to $275.99 million in 2018.
Beginning on February 14, 2019, when Six Flags Entertainment Corporation announced a negative $15 million revenue adjustment for the fourth quarter of 2018 due to delays in the expected opening dates of some of its China parks, which the Company falsely blamed on macroeconomic issues in China.
Then, on October 23, 2019, Six Flags Entertainment Corporation again postponed the timing of its park openings in China, stating "it's unrealistic to think it's going to be exactly as we've outlined."
Finally, on January 10, 2020, Six Flags Entertainment Corporation disclosed that the development of its Six Flags-branded parks in China continued to encounter challenges and had not progressed as expected, placing the future of its China parks in jeopardy. Six Flags Entertainment Corporation also revealed that Riverside continued to face significant financial challenges, which caused Riverside to default on its payment obligations to Six Flags. As a result of these disclosures, the price of Six Flags Entertainment Corporation common stock declined precipitously.
Shares of Six Flags Entertainment Corporation (NYSE: SIX) declined from $59.52 per share in August 2019 to as low as $35.06 per share on January 13, 2020.
The plaintiff claims that between April 25, 2018 and January 9, 2020, the defendants made materially false and misleading statements regarding the Company's business, operations, and growth prospects related to its agreements with Riverside to develop parks in China.
The plaintiff claims that as development of those parks began to face delays, Defendants misled investors by downplaying the problems as "short-term" and "not material in the context of the long-term opportunity", that the Defendants also assured investors that Riverside was "work[ing] through" the macroeconomic issues in China and that Riverside was in "great shape" financially, that in truth, Riverside was in severe financial distress and did not have the resources to timely complete its projects with Six Flags, and that as a result of Defendants' misrepresentations, shares of Six Flags' common stock traded at artificially inflated prices between April 25, 2018 and January 9, 2020.
Those who purchased shares of Six Flags Entertainment Corporation (NYSE: SIX) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.