Overview

A class action lawsuit has been filed against y Six Flags Entertainment Corporation f/k/a CopperSteel HoldCo, Inc. (referred to herein as “CopperSteel” pre-merger and “Six Flags” or the “Company” post-merger) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws. The Company’s common stock trades on the New York Stock Exchange (“NYSE”) under the ticker “FUN.”

The Six Flax class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired Six Flags common stock pursuant or traceable to the Company’s registration statement and prospectus issued in connection with the July 1, 2024 merger of legacy Six Flags Entertainment Corporation (“Legacy Six Flags”) with Cedar Fair, L.P. (“Cedar Fair”), and their subsidiaries and affiliates.Cedar Fair and Legacy Six Flags combined two amusement park behemoths in a “merger of equals” to create North America’s largest regional amusement park operator with a property portfolio of approximately 40 amusement parks and water parks, along with several resort properties (the “Merger”), (the “Class Period”).

The lawsuit alleges that Six Flags Entertainment Corporation and its executives negligently misled investors about the true condition of Legacy Six Flags’ business and the financial soundness of its merger with Cedar Fair. The claims are based on strict liability and negligence—not fraud or reckless misconduct.

According to the lawsuit, before the July 2024 merger, Legacy Six Flags and its leadership repeatedly represented that the company had undergone a successful “premiumization” transformation focused on improving the guest experience through upgraded infrastructure, amenities, and park enhancements. Executives emphasized that these investments justified higher ticket prices and positioned the company for sustainable, long-term growth. These claims were highlighted in multiple earnings calls from 2022 through 2023 and were incorporated into the merger registration statement filed with the SEC. The registration materials touted the merger as a “transformational” deal that would create the largest amusement park operator in North America, produce hundreds of millions of dollars in annual cost savings, and generate strong cash flow to fund new park investments and pay down debt.

The lawsuit contends that these statements were materially false and misleading because Legacy Six Flags had, in reality, suffered years of chronic underinvestment. Many of its parks required substantial capital expenditures for maintenance, infrastructure repair, and ride modernization. The company had deferred or foregone essential upkeep, leaving its properties deteriorated and operationally strained. Additionally, cost-cutting under Legacy Six Flags’ leadership—particularly through staff reductions—had eroded operational capabilities and degraded the guest experience. At the time of the merger, Legacy Six Flags required significant, undisclosed capital infusions simply to maintain competitiveness, undermining the entire financial rationale for the merger as presented to investors.

After the merger closed on July 1, 2024, Six Flags quickly began revealing the extent of these hidden problems. The company’s first post-merger quarterly report in November 2024 showed a $427 million increase in operating costs and expenses, largely tied to Legacy Six Flags’ parks. Subsequent disclosures throughout early 2025 revealed that the combined company needed $500–$525 million annually in capital expenditures to stabilize operations—far higher than historical spending levels. Analysts began questioning management about the unexpected capital needs and the deferred maintenance at the former Six Flags parks. Executives admitted that maintenance and infrastructure issues had been more severe than anticipated and that higher spending was necessary to address years of neglect.

By mid-2025, the financial strain became apparent. On August 6, 2025, Six Flags announced disastrous second-quarter results, with revenue and EBITDA far below expectations, a 20% cut to annual earnings guidance, and a leverage ratio that had ballooned to 6.2x. The company slashed its capital expenditure plan by 20% and began considering asset sales to reduce debt. Analysts expressed skepticism about management’s explanations, pointing to rising costs and the company’s failure to achieve the merger synergies it had promised.

Following these disclosures, Six Flags’ stock price collapsed—from over $55 per share at the time of the merger to as low as $20 per share, a decline of nearly 64%. The lawsuit alleges that, as a result of the negligent misstatements and omissions in the merger registration statement, investors suffered substantial economic losses, as the merger’s purported benefits and financial foundations proved illusory.

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If you purchased or otherwise acquired Six Flags common stock pursuant to, or traceable to, the Company’s registration statement and prospectus issued in connection with the July 1, 2024 merger between Legacy Six Flags Entertainment Corporation (“Legacy Six Flags”) and Cedar Fair, L.P. (“Cedar Fair”), you may be eligible to serve as lead plaintiff in this lawsuit. The merger combined two of the nation’s largest regional amusement park operators in a so-called “merger of equals,” creating the largest amusement park and water park company in North America with a portfolio of roughly 40 parks and several resort properties (the “Merger”). If you invested in Six Flags securities and wish to seek appointment as lead plaintiff, we encourage you to contact DiCello Levitt LLP by submitting your information through the form on this page.

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as lead plaintiff in the Six Flags class action lawsuit is January 5, 2026.