SIX.US
id: 1322
Six Flags ($FUN) $40M Investor Settlement
Late claims are being considered for compensation, subject to approval.
$40,000,000
Cash SettlementN.D. Texas
Court4:20-cv-00201
Case number04/24/2018
Class period Start02/19/2020
Class period End02/04/2025
Claim deadlineSix Flags ($FUN) has agreed to settle $40 million with investors to resolve claims that it misled them about the progress and challenges of its theme park projects in China.
Outline
In 2019, Six Flags repeatedly reassured investors that delays in its China theme park projects were minor, despite ongoing issues. However, in January 2020, the company admitted that the projects faced serious setbacks after Riverside Investment Group defaulted on payments. Following this, $SIX fell 18%, and Six Flags faced a lawsuit from investors.
Timeline
- February 14, 2019 – Six Flags reported a $15 million revenue adjustment tied to China park delays; $SIX dropped 14%.
- October 23, 2019 – Six Flags announced further China project delays, causing a 12% drop in $FUN.
- January 10, 2020 – Six Flags admitted to severe issues with its China projects after Riverside defaulted; $FUN declined 18%.
- February 12, 2020 – Investors filed a lawsuit, alleging Six Flags misled them about the progress and viability of its international theme park projects in China.
- September 6, 2024 – Six Flags agreed to a $40 million settlement with investors.
Background
In 2014, Six Flags partnered with Riverside Investment Group to expand into China, with plans to build multiple theme parks.
However, by late 2018, Riverside was already facing financial difficulties, leading to construction delays and missed payments. Despite this, Six Flags reassured investors that the problems were minor and temporary.
On February 14, 2019, Six Flags disclosed a $15 million revenue adjustment due to project delays, triggering a 14% drop in $FUN. By October 2019, further delays were announced, causing another 12% decline.
On January 10, 2020, the company finally admitted that Riverside had defaulted on payments, jeopardizing the China projects. This revelation led to an 18% drop in $FUN.
On February 12, 2020, $FUN investors filed a lawsuit against Six Flags.
What Can Investors Expect Now?
Six Flags ($FUN) has agreed to settle $40 million with investors to resolve claims that it misled them about the progress and challenges of its theme park projects in China.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Type
US Securities Class Action
Case Status
Accepting Late Claims
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.476
Filing date
02/12/2020
Plaintiffs
Oklahoma Firefighters Pension and Retirement System
Attorneys
Bernstein Litowitz Berger & Grossmann LLP (New York, NY), Klausner, Kaufman, Jensen & Levinson (Plantation, FL), The Law Office of Jason Nash, P.L.L.C. (Weatherford, TX)
Defendants
James Reid-Anderson, Marshall Barber
Judge
Hon. Mark Pittman
Administrator
JND Legal Administration
Court hearing date
01/28/2025
Exclusion deadline
11/21/2024
Objection deadline
11/21/2024
Attorney fee
$10,650,000
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
How much will my payment be?
How to get your payout?
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