NEW YORK, Feb. 26, 2020 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Six Flags Entertainment Corporation ("Six Flags" or the Company") (NYSE: SIX) and certain of its officers, on behalf of shareholders who purchased Six Flags securities between April 25, 2018 and January 9, 2020, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/six.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) the delays of park develop in China with Riverside were not "short-term" and were material in the context of long-term opportunity; (2) Riverside was in severe financial distress and did not have the resources to timely complete its projects with Six Flags; and (3) as a result, the Company's public statements were materially false and misleading at all relevant times.
On February 14, 2019, Six Flags announced a negative revenue adjustment of $15 million in the fourth quarter of 2018 related to the Company's agreement with Chinese real estate developer Riverside Investment Group Co. Ltd. ("Riverside") due to delays in the expected opening dates of Six Flags-branded theme parks in China, citing Macroeconomic issues in China. As a result, Six Flags reported a 38% decline in the Company's sponsorship, international agreements and accommodations revenue compared to the fourth quarter of 2017. Six Flags also advised investors that it expected weaker than anticipated quarterly revenue from its agreements with Riverside in 2019 and 2020. On these disclosures, Six Flags' stock price fell $9.00 per share, or 14.09%, to close at $54.87 per share on February 14, 2019. On October 23, 2019, Six Flags again announced postponement of its park openings in China, stating that "there's a very high likelihood going forward that we will see changes in the timing of park openings" and "it's unrealistic to think it's going to be exactly as we've outlined." As a result, Six Flags reported a 26% decline in sponsorship, international agreements and accommodations revenue for the third quarter of 2019 compared to the third quarter of 2018. On these disclosures, Six Flags' stock price fell $6.35 per share, or 12.4%, to close at $44.88 per share on October 23, 2019. Then, on January 10, 2010, pre-market, Six Flags revealed that the future of the Company's China projects was in jeopardy. Specifically, Six Flags announced that the development of Six Flags-branded parks in China continued to encounter challenges and had not progressed as expected. Six Flags further reported that Riverside continued to face significant challenges due to the macroeconomic environment and declining real estate market in China, which caused riverside to default on its payment obligations to Six Flags. Six Flags advised investors that, in the fourth quarter of 2019, the Company would realize no revenue from its agreements with Riverside and expected a negative $1 million revenue adjustment related to those agreements. Six Flags also announced one-time charges totaling approximately $10 million related to Riverside's default. On these disclosures, Six Flags' stock price fell $7.80 per share, or 17.82%, to close at $35.96 per share on January 10, 2020.
If you wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/six or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Six Flags you have until April 13, 2020 to request that the Court appoint you as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC