Six Flags Entertainment Corporation Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Six Flags Entertainment Corporation (FUN).

If you purchased or acquired Six Flags Entertainment securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Six Flags Entertainment

Six Flags Entertainment is a regional theme park and waterpark operator in North America. The company manages a portfolio of amusement parks that attract millions of visitors each year, offering a variety of rides, attractions, and seasonal events.

The company’s business model relies heavily on ticket sales, season passes, and in-park spending, making it particularly sensitive to changes in consumer demand and broader economic conditions.

Potential Concerns Under Investigation

Lawyers are investigating whether Six Flags Entertainment may have made misleading statements or failed to disclose important information to investors during the period from May 8, 2025, through August 6, 2025. The investigation focuses on several key events and disclosures that appear to have significantly impacted investors.

On August 6, 2025, Six Flags Entertainment issued a press release and held an earnings call reporting a net loss of $100 million (or $0.99 per share) for the second quarter of 2025. Alongside these results, the company sharply reduced its full-year Adjusted EBITDA outlook to between $860 and $910 million, down from the previous guidance of $1.08 - $1.12 billion.

Management attributed the disappointing results to “unfavorable weather” and a “drop in single-day ticket sales, fewer sales of season passes and memberships, and lower renewal rates." They also announced that CEO Richard Zimmerman would resign by year-end.

The market responded swiftly to this news. On August 6, 2025, Six Flags Entertainment’s stock plunged nearly 20 percent, dropping from approximately $30.70 to $25.72 per share at the open, compounding an already significant year-to-date decline of roughly 36 percent.

The timing and magnitude of this drop may suggest that the losses were tied to the August 6 disclosure, as no broader market events explained the decline on that day.

Securities attorneys could be looking into whether Six Flags Entertainment executives made overly optimistic statements in the months leading up to the August 6 disclosure. For example, on May 8, 2025, executives stated that the company was “maintaining our full year Adjusted EBITDA guidance range for 2025” and expressed confidence in achieving that target.

However, this guidance was later slashed, and the assurances now appear misleading. Management had also attributed earlier poor results to “timing shifts” and weather, insisting these were “transient and not reflective of a loss of consumer interest."

Yet, by August, attendance continued to lag, and the company revealed an 8 percent decline in active pass holders at the end of the second quarter.

Legal professionals may review whether shareholders were informed about the true nature of declining demand and whether management’s repeated references to external factors (like weather) may have concealed more fundamental business weaknesses.

For instance, while the company touted a 6 percent year-over-year increase in season-pass sales in the first quarter, the subsequent drop in active pass holders suggests that the positive narrative may not have reflected the full picture.

Attorneys might also examine the actions of key executives, who signed or approved the public disclosures at issue. In addition, the company has disclosed that it is under an SEC investigation regarding prior disclosures from 2018 through February 2020, which could raise further questions about its financial reporting practices.

The investigation may also focus on the potential harm to investors. The per-share loss following the August 6 disclosure was about $5, and with tens of thousands of investors potentially affected, aggregate losses could reach hundreds of millions of dollars.

These losses appear to be directly tied to the company’s alleged corrective disclosures, as the stock price did not recover in the days following the announcement.

Your Rights and Next Steps

Investors who purchased Six Flags Entertainment securities between May 8, 2025, and August 6, 2025, and suffered financial losses may have important legal rights. Since this is currently an investigation and not a filed lawsuit, no class action has been certified yet.

However, if the investigation uncovers evidence of securities fraud or other violations, a class action lawsuit may be filed on behalf of affected investors.

Lawyers are ready to help investors understand their rights, gather documentation, and determine eligibility to participate in any potential class action. Investors are encouraged to act promptly, as securities investigations are time-sensitive and deadlines may apply to any future legal action.

You May Be Entitled to Compensation

If you purchased or acquired Six Flags Entertainment securities and experienced losses during the potential class period, you may be eligible to join this investigation and seek compensation. Securities investigations move quickly, so it is important to take action as soon as possible.

To find out if you qualify, complete the form below to join the investigation.