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.
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.
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.