Six Flags investors are threatening to sue the amusement park giant after it reported a stunning $100 million quarterly loss — leading some to question whether the company could have disclosed its financial troubles earlier.
Two Los Angeles-based law firms have announced that they have launched separate investigations into Six Flags Entertainment Corp. for possible securities fraud.
The Schall Law Firm and Portnoy Law Firm said they are looking into whether Six Flags deliberately misled shareholders before dropping devastating second-quarter results on Aug. 6.
“As a matter of policy we do not comment on litigation,” a Six Flags spokesperson told The Post.
Shares of the theme-park operator, traded under the ticker FUN, have been in a tailspin since the Aug. 6 earnings release, when Six Flags disclosed it had gone from profit to deep red ink in just a year.
Six Flags stock price has fallen more than 45% year-to-date. In 2017, the share price reached an all-time high of more than $70 — but has since plummeted by more than 60%.
As of Monday morning, the stock was down nearly 2%. It was trading at around $25 per share.
The company also slashed its full-year forecast, rattling Wall Street and wiping millions off its market value.
Executives blamed bad weather for keeping thrill-seekers at home, but also admitted season-pass sales were lagging badly — a troubling sign for a chain that depends on repeat customers.
The meltdown comes as CEO Richard Zimmerman, who took the helm in late 2021 promising a turnaround, prepares to step down at year’s end. His looming exit has only added to the sense of chaos around the once-iconic brand.
“The investigation focuses on whether the company issued false and/or misleading statements and/or failed to disclose information pertinent to investors,” the Schall firm said in its notice.
The Los Angeles-based law shop, which specializes in shareholder litigation, is now urging anyone who bought Six Flags stock and suffered losses to get in touch.
Lead attorney Brian Schall is offering free consultations and dangling the possibility of a class-action lawsuit.
Analysts had expected headwinds from inflation and higher interest rates, but few predicted a nine-figure loss tied to empty roller coasters and soggy summer weekends.
For investors, the picture is even uglier given Six Flags’ past promises of stable growth and strong consumer demand. The firm’s troubles also raise questions about its strategy of hiking ticket prices while trying to rebrand the parks as more upscale destinations.
The Schall investigation is one of several probes likely to emerge as lawyers smell blood. Securities firms routinely pounce when a big-name stock tanks, hoping to build class actions that can force settlements or payouts.
In its pitch, Schall points out that Six Flags not only reported poor results but also cut its guidance for the rest of 2025 — an admission, critics say, that management saw storm clouds forming long before they told shareholders.
The announcement has set off fresh chatter among Wall Street skeptics that the company may have tried to hide how fast its attendance and pass sales were deteriorating.
Adding to the drama, Zimmerman’s planned exit leaves the company without a clear leader during its most precarious stretch in years. He will step aside just as the crucial holiday season looms, with investors now bracing for more volatility.
Schall’s team is pushing anyone who lost money on Six Flags stock to sign up, promising to “discuss your rights free of charge.”
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