Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

Six Flags Beats Shareholder Derivative Suit on China Theme Parks

April 28, 2021, 8:10 PM

Six Flags Entertainment Corp. is free of derivative allegations over problems with its planned theme parks in China because the shareholders failed to go to the board before suing, a federal judge in Texas said Wednesday.

The amusement park company’s shareholders didn’t make a pre-suit demand on the Six Flags board before going to court, and they didn’t properly allege that the directors couldn’t consider a demand impartially, the U.S. District Court for the Northern District of Texas said.

The shareholders accused Six Flags directors and officers of breaching their fiduciary duties, wasting corporate assets, and unjustly enriching themselves. ...