SIX Investor Alert: April 13, 2020 Filing Deadline in Class Action – Contact Lieff Cabraser
February 20 2020 - 2:02PM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP
announces that class action litigation has been filed on behalf of
investors who purchased shares of the common stock of Six Flags
Entertainment Corporation (“Six Flags” or the “Company”) (NYSE:
SIX) between April 25, 2018 and January 9, 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.
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/.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20200220005807/en/
Source/Contact for Media Inquiries Only Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP Telephone:
1-800-541-7358
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