SAN FRANCISCO, April 04, 2020 (GLOBE NEWSWIRE) — Hagens Berman urges Six Flags Entertainment Corporation (NYSE: SIX) investors who have suffered losses in excess of $500,000 to submit their loss now to learn if they qualify to recover their investment losses. The April 13, 2020 lead plaintiff deadline in a securities fraud class action that has been filed against the company and senior executives is fast approaching.
Six Flags Entertainment Corporation (SIX)
Securities Class Action:
According to the Complaint, Defendants made false and misleading statements about Six Flags’ business, operations, and growth prospects related to agreements with its partner (Riverside) to develop parks in China.
More specifically, according to the Complaint, as development of those parks began to face delays, Defendants falsely (1) downplayed the problems as “short-term” and “not material in the context of the long-term opportunity” and (2) assured that Riverside was “work[ing] through” the macroeconomic issues in China and that Riverside was in “great shape” financially.
The Complaint alleges that investors learned the truth about development delays and Riverside’s financial health through a series of partial disclosures beginning on Feb. 14, 2019, when Defendants announced a negative $15 million revenue adjustment for Q4 2018 due to delays in opening dates of some of its China parks, which the Company falsely blamed on macroeconomic issues in China. The Complaint alleges that the fraud was fully disclosed on Jan. 10, 2020, when Defendants disclosed further delays in development of Six Flags-branded parks in China and Riverside’s default on its payment obligations to Six Flags.
Each disclosure drove the price of Six Flags shares sharply lower.
“We’re focused on recovering investors’ losses and proving Six Flags intentionally misled investors about the progress of its parks in China,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Six Flags should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SIX@hbsslaw.com.
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Reed Kathrein, 844-916-0895