After a slow summer for thrill seekers — and $100 million total losses — Six Flags investors have launched an investigation into fraud at the theme park.
Los Angeles-based Schall Law Firm says it is investigating whether Six Flags issued false or misleading statements or failed to disclose information pertinent to investors.
The lawsuit comes as the amusement park announced its second-quarter financial results earlier this month, which included a devastating $100 million net loss and the news that CEO Richard Zimmerman would step down by the end of the year. Shares were also down 47 percent year to date, according to Morning Brew.
While the park’s profits plummeted, Six Flags also reported a seven-figure drop in visitors. The park also saw 1.4 million fewer visitors during the second quarter.
Despite the North Carolina-based park’s losses this year, its competitors, including Disney and Universal, weren’t facing similar struggles. Revenue at Disney’s domestic parks rose 10 percent year over year in its most recent quarter, and Universal recently opened its $7 billion Epic Universe theme park, according to Morning Brew.
Six Flags has made some efforts to turn its financial troubles around, including announcing it would close a park in Maryland and sell the land.
Even still, the company recently laid off hundreds of full-time staff following its 2024 acquisition of Cedar Fair, the entertainment company responsible for Cedar Point amusement park in Sandusky, Ohio.
Schall Law Firm, a national shareholder rights litigation firm, is inviting investors of Six Flags Entertainment Corporation to join the lawsuit.
Six Flags did not immediately return The Independent’s request for comment on the case, but recently blamed the decrease in visitors on several parks removing winter events and adverse summer weather.
“July was a turning point as weather normalized and guests had a chance to experience our new rides and other attractions,” a Six Flags spokesperson told Chron.
“We’re seeing a surge in demand for our parks, and sales of season passes and memberships are climbing fast. While we know we have ground to make up from a tough May and June, these results send a clear message: when the gates are open and the product is strong, people will visit.”
